It reduced the windfall tax, also known as special additional excise duty, on domestically-produced crude oil to Rs 2,100 per tonne from Rs 4,600 per tonne earlier. This reduction in duty is part of the fortnightly review undertaken by the government in the special additional excise duty, also known as the windfall tax.
The windfall tax on the export of diesel and aviation turbine fuel is yet to be levied at zero. This comes after a recent cut on July 31 when the tax on crude oil was discouraged by 34.3 per cent to Rs 4,600 per tonne from Rs 7,000, while the export tax on diesel and ATF was left constant.
The windfall tax was first levied in July 2022 on crude producers before it was extended to apply to gasoline, diesel and ATF exports. It is aimed at preventing private refiners like Reliance Industries from exporting fuels at higher international prices and instead forty-six forces them to supply the domestic market.
The adjustment comes as crude oil prices have remained in a trading range of less than $80 per barrel due to concerns over demand from China, the world’s biggest oil consumer, and reduced geopolitical tensions in the Middle East.
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Source: Moneycontrol
News Desk
