The Centre has gone in for a cut in the windfall tax on the sale of locally produced crude oil at a time when global oil prices have largely remained flat at around USD 95 per barrel
The Centre on Tuesday reduced the windfall tax on crude oil to Rs 9,500 a tonne from Rs 11,000 earlier. The change is effective from 2 November, a government notification read. The Centre also raised the special additional excise duty on the export of aviation turbine fuel from Rs 3.5 per litre to Rs 5 per litre.
The special additional excise duty on the export of diesel has also been increased from Rs 12 per litre to Rs 13 per litre. The windfall tax is aimed at absorbing the super profits earned by domestic crude oil producers. This windfall tax is revised on a fortnightly basis. The Centre has gone in for a cut in the windfall tax on the sale of locally produced crude oil at a time when global oil prices have largely remained flat at around USD 95 per barrel.