Centre slashes windfall tax on fuel exports

Chennai: In line with softening international oil prices, the Centre has cut windfall tax on profits made from the export of diesel and aviation turbine fuel or ATF to the lowest. The government has also reduced the levy on domestically-produced crude. The new tax rates come into effect from February 16, according to a late evening order issued by the government on Wednesday.

As per the order, the windfall tax on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been cut to ₹4,350 per tonne from ₹5,050 per tonne, while special additional excise duty on ATF cut to ₹1.50 per litre from ₹6 per litre. “Besides, the special additional excise duty on diesel has been cut to ₹2.50 per litre from ₹7.50 per litre,” it said.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks. India first imposed windfall profit taxes on July 1.