Government on Thursday announced that the domestic windfall tax on the locally produced domestic crude oil and aviation turbine fuel (ATF) will be reduced to ₹1,700 per tonne from the existing price of ₹4,900 per tonne.
The government has also reduced the rate on export of diesel from ₹8 per litre to ₹5 per litre and has reduced the windfall tax on jet fuel or ATF from ₹5 per litre to ₹1.5 per litre.
The government has been revising the tax every two weeks since its introduction on July 1. At that time the centre applied duties on ₹6 per litre on petrol and ATF and ₹13 a litre on diesel.
After its latest revision the tax has been reduced by a total of 65%.
The revised tax rates become effective from 16th December,2022
Windfall profit tax is collected by the government on the profit made by the oil producers on any price they get above a threshold of $75-76 barrel.
Earlier on 1st December the the excise duty was cut from ₹10,200 per tonne to ₹4,900 per tonne and the excise duty on diesel was also reduced.
