Days after the Union Budget 2023-24, the Centre has revised upwards windfall gain tax on crude production, diesel and aviation turbine fuel (ATF) export.
The government has hiked windfall gain tax on domestic crude production to Rs 5,050 per tonne from Rs 1900 per tonne and the additional tax on ATF export has been increased from Rs 3.5 per litre to Rs 6 per litre.
While windfall tax on diesel export has been raised to Rs 7.5 per litre from 5 per litre, according to a notification.
Last month, the government had cut windfall tax on locally produced crude oil and exports of ATF and diesel. Windfall tax on crude was cut to Rs 1,900 per tonne from Rs 2,100 per tonne earlier. The government also lowered export tax on ATF to Rs 3.5 per litre from Rs 4.5 per litre.
The export tax on diesel was reduced to Rs 5 per litre from Rs 6.5 per litre earlier.
All about windfall tax and why it is imposed
Windfall tax is a special additional excise duty levied to absorb the super-profits earned by domestic crude oil producers due to high global crude prices. India is the world’s largest consumer and importer of oil. The country has been buying Russian crude oil at well below a $60 barrel price cap agreed by the West. India in July last year imposed the windfall tax on crude oil producers and levied on exports of petrol, diesel and ATF.
The Centre maintained that the windfall tax levy was introduced in view of the windfall gains made by domestic crude producers and refiners due to high global crude and product prices. The Centre revises tax rates fortnightly.
