New Delhi: The Union government hiked the windfall tax imposed on domestically produced crude oil, high-speed diesel, and aviation turbine fuel. The Central Board of Indirect Taxes and Customs has issued the official notification for this. The revised tax rate will come into effect from today, January 3, 2023.
As per the revised order, the windfall tax on crude oil has been raised to Rs 2,100 per tonne. At present the windfall tax on crude oil is Rs 1,700 per tone. On high-speed diesel for exports, the windfall tax has been raised from Rs 5 per litre to Rs 7.5 per litre. On aviation turbine fuel, the windfall tax has been raised from Rs 1.5 per litre to Rs 4.5 per litre.
India is the world’s largest consumer and importer of crude oil. The Union government in July last year imposed the windfall tax on crude oil producers and levies on exports of petrol, diesel and aviation fuel. Windfall tax is levied as a special additional excise duty which is aimed at absorbing the super-profits earned by domestic crude oil producers due to high global crude, product prices. The Union government reviews the windfall tax and associated rates in a fortnightly manner.