Centre Hikes Export Taxes on Fuel, Windfall Tax on Crude; Which OMCs Exempted?

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Centre Hikes Export Taxes on Fuel, Windfall Tax on Crude; Which OMCs Exempted?
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The Centre has hiked duties levied on the export of aviation turbine fuel (ATF), petrol and diesel exports, and announced an additional tax charged on windfall gains made by domestic refineries.

However, only a portion of the windfall gains made by refiners will be taxed, as no cess would be levied on the volume of increased production between 2021-22.

The export duty has been raised by Rs 13/L on diesel, and Rs 6/L on petrol and ATF. An additional tax of Rs 23,230/tonne has been charged on crude oil produced domestically, taking a hit on such producers’ windfall gains, accruing from high international oil prices.

Further, this tax regime will not be applicable for companies (OMCs or Oil Marketing Companies) producing lower than 2 million barrels in a year.

Domestic companies have also been notified by the Government that at least 50% of the shipping bills in a financial year, need to be reserved for the domestic market, as per a CNBC TV-18 report.

The Centre has clarified that the application of these new taxes will not raise the prices of petroleum products in the country but will ensure their availability in the domestic market.

Read Also: Import Tax on Gold Hiked Sharply by 5%: Here’s Why & Its Impact on Rates

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  • Rohit Nimbalkar @Rohit Nimbalkar
    Hellow, Will Reliance be Excluded ?
    Like 0
    • Nirav Ganatra @Nirav Ganatra
      1$ per barrel impacts, Reliance 400 million dollars so you can imagine the above said amount which says approx 27$ on diesel and 13$ on petrol will be imposed as tax.
      Like 0
    • divyam dubey @divyam dubey
      Offcourse not
      Like 0
    • divyam dubey @divyam dubey
      Offcourse not
      Like 0

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  • Rohit Nimbalkar @Rohit Nimbalkar
    is Reliance Excluded ?
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  • Rohit Nimbalkar @Rohit Nimbalkar
    is Reliance Excluded ?
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