Profit

Center Increases Windfall Tax on Diesel Export, ATF; increases tax on domestic crude oil

The Ministry of Finance increases export taxes on crude, diesel and ATF after lowering tax rates for two consecutive fortnights reflecting the fall in world crude prices

The Ministry of Finance increases export taxes on crude, diesel and ATF after lowering tax rates for two consecutive fortnights reflecting the fall in world crude prices

The government on Saturday increased the windfall tax on diesel export to ₹12 per liter and that on jet fuel exports to ₹3.50 per liter with effect from October 16.

The tax on domestically produced crude oil was also increased from ₹3,000 per ton to ₹11,000.

After lowering tax rates for two consecutive fortnights reflecting falling global crude prices, the Ministry of Finance has pushed up export taxes on crude, diesel and ATF, in its latest revision .

In the Seventh Bi-Monthly Review, the government raised windfall tax on diesel export to ₹12 per liter from ₹6.5 per litre, and reduced export tax on ATF (Aviation Turbine Fuel ) to ₹3.50 per litre, from zero, the Union Finance Ministry said in a notification.

While private refiners Reliance Industries Ltd. and Rosneft-based Nayara Energy are major exporters of fuels such as diesel and ATF, the windfall tax on domestic crude targets producers such as the state-owned Oil and Natural Gas Corporation (ONGC ) and Vedanta Ltd.

India imposed windfall taxes for the first time on July 1, joining a growing number of countries that tax the super normal profits of energy companies. But international oil prices have cooled since then, eroding profit margins for oil producers and refiners.