Centre cuts windfall tax on domestic crude oil

New Delhi: The Centre has cut the windfall profit tax on domestically produced crude oil. Along with this fortnightly revision in windfall tax, the Centre has also slashed the levy on diesel. As per updates, these changes come into effect from Friday, according to an order issued by the government on Thursday late night.

The move of the government comes at a time when global crude prices has witnessed almost 14 per cent slump since November. As per global estimate, India is the world's third largest consumer and importer of oil.

According to the revised prices, the windfall tax on crude oil produced by firms such as the state-owned Oil and Natural Gas Corporation (ONGC) has been reduced to Rs 1,700/tonne from the previous Rs 4,900/tonne. Before the previous revision, this amount was Rs 10,200 per tonne.

The government has also cut the rate on export of diesel to Rs 5 per litre from Rs 8 per litre. Before the previous revision, this rate was Rs 10.5 per litre. The new levy also includes Rs 1.5 per litre as road infrastructure cess, like in every case.

On July 1, India imposed the windfall tax on crude oil producers and levies on exports of gasoline, diesel and aviation fuel after private refiners sought overseas markets to gain from robust refining margins, instead of selling at lower-than-market rates in the country