New Delhi: The Union government has reduced the windfall profit tax imposed on domestically-produced crude oil. The Union Ministry of Finance announced this. The windfall tax on locally produced crude oil is slashed to Rs 3,500 per tonne from Rs 4,400 per tonne. The ministry also announced a marginal increase in the export duty on diesel. Export duty on diesel is hiked to Rs 1 per litre from Rs 0.50.
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.
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The government had on 4 March 2023 marginally hiked windfall tax on locally produced crude oil to Rs 4400 per tonne from Rs 4350 per tonne. The government’s move to reduce the windfall tax on crude oil comes on the back of the recent ease in global crude oil prices.
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