Govt reduces windfall tax on crude oil to Rs 4,100

Windfall tax cut down to Rs 4,100 a tonne from May 2, 2023.

The government has cut the windfall tax on crude oil to Rs 4,100 per tonne from Rs 6,400 per tonne, effective from today, according to a notification.

The government has left the windfall tax on petrol, diesel and aviation turbine fuel at zero.

The tax rates are revised fortnightly based on oil price fluctuations. On April 4, India cut the windfall tax on petroleum crude to zero from Rs 3,500 per tonne previously. The levy on crude was hiked to Rs 6,400 per tonne on April 19.

The government had last July imposed the windfall tax on crude oil producers and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.