Windfall tax cut on crude oil, export of diesel, ATF

PTI

New Delhi, January 17

The government has reduced the windfall profit tax levied on domestically produced crude oil and on the export of diesel and ATF, in line with softening international oil prices, according to an official order.

Second lowest since introduction

• The levy on crude oil produced by companies such as ONGC has been cut to Rs 1,900 per tonne from Rs 2,100 per tonne, the order dated January 16, said
• The government has also reduced the tax on export of diesel to Rs 5 per litre, from Rs 6.5 and the same on overseas shipments of ATF to Rs 3.5 a litre, from Rs 4.5 a litre

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been cut to Rs 1,900 per tonne from Rs 2,100 per tonne, the order dated January 16, said.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuel like petrol, diesel and ATF.

The government has also reduced the tax on export of diesel to Rs 5 per litre, from Rs 6.5 and the same on overseas shipments of ATF to Rs 3.5 a litre, from Rs 4.5 a litre. The new tax rates are effective from January 17. Windfall profit tax on domestically-produced crude is the second lowest since the new levy was introduced in July 2022. The tax had fallen to Rs 1,700 per tonne in the second fortnight of December 2022.