Centre Slashes Windfall Tax on Crude Oil by 20%, Diesel Export New Rate?
By Malvika Gurung
Investing.com -- The Centre has continued to revise the windfall taxes on gains produced by domestic refineries and oil producers, the latest one being on late Monday.
The finance ministry has cut the windfall profit tax on domestically produced crude oil to Rs 3,500/tonne from the recently-raised Rs 4,400/tonne, coming under effect from March 21, 2023. This marks a 20.45% reduction.
However, the cess on the export of diesel has been increased from its lowest level of Rs 0.5/litre to now at Rs 1/L.
Meanwhile, the windfall tax on the export of jet fuel or aviation turbine fuel continues to stay zero. The government had stripped off/removed this tax from Rs 1.5/litre earlier this month.
Further, the federal government continues to exercise the special additional excise duty on petrol to zero or nil.
Earlier in March, the Centre had increased the windfall profit tax on domestic production of crude oil to Rs 4,400/tonne.
This has now been reduced as crude oil prices have witnessed record falls last week, plunging to over 1-year lows.
Oil counters Brent crude Futures and WTI Futures plummeted up to 15% last week, witnessing their worst weekly loss so far in 2023, led by spurring banking crises in the US and concerns that a rout of this magnitude could spill over into the broader economy, denting activity and potentially damaging crude demand.
Read Also: Goldman Cuts Oil Forecast to Under $100 After Turning Highly Bullish: Here’s Why
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