Centre slashes windfall tax on domestic crude, diesel and ATF export

In addition, the windfall tax on the export of diesel has been reduced to Rs 4 per litre, from Rs 5 per litre. Also, the Centre cut the duty on aviation turbine fuel (ATF) to Rs 1 per litre from Rs 2.5 per litre.

The Centre, on October 17, announced a cut on the windfall tax on petroleum crude, aviation turbine fuel, and diesel.

As per a government notification, the special additional excise duty (SAED) on crude petroleum has now been reduced to Rs 9,050 per tonne from Rs 12,100 per tonne, effective October 18. The Centre had raised the windfall tax on petroleum crude to Rs 12,100 per tonne from Rs 10,000 per tonne on September 30.

In addition, the windfall tax on the export of diesel has been reduced to Rs 4 per litre, from Rs 5 per litre. Also, the Centre cut the duty on aviation turbine fuel (ATF) to Rs 1 per litre from Rs 2.5 per litre.

The Narendra Modi government introduced windfall profit taxes in July 2022. It later extended the tax imposition on gasoline, diesel and ATF exports after private refiners expressed interest in raking in profits from the strong refining margins in the overseas markets, instead of selling in the domestic market.

(With agency inputs)