New Delhi: The Union government has removed the windfall tax imposed on domestically produced crude oil. The tax is slashed to nil from Rs 3,500 per tone. The government also reduced the Special Additional Excise Duty imposed on the export of diesel to Rs 0.5/litre from Re 1/litre. Other than diesel, products like crude, petrol, and ATF have no windfall tax levied. The decision will come into effect from today.
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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Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel, and aviation turbine fuel (ATF).
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