Centre Revises: Windfall Tax Cut Further, Export Cess on ATF & Diesel Hiked

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Centre Revises: Windfall Tax Cut Further, Export Cess on ATF & Diesel Hiked
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The Centre has once again revised the recently-introduced windfall taxes on gains produced by domestic refineries and oil producers, and export levies imposed on fuels.

In a government notification issued on Aug 18, the windfall cess on crude oil has been cut from Rs 17,750/tonne to Rs 13,000 after oil prices hit fresh six-month lows recently. The export duty on diesel and ATF have been revised too.

Read Also: Oil Hits Fresh 6-Month Low on Demand Concerns, Reverses Early-Trade Uptick

Cess on the export of jet fuel has been raised to Rs 2 from zero and that on diesel has been hiked from Rs 5/L to Rs 7. The export duty on petrol remains entirely eliminated.

This is the third time the Government has revised the windfall gain taxes. The most recent changes will come into action on August 19.

On July 1, 2022, the Centre slapped export taxes on ATF, petrol and diesel, along with a windfall tax of Rs 23,230/tonne of crude oil produced domestically, given gains reaped by oil companies due to elevated crude oil prices internationally.

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

However, in a surprise move on Jul 20, export levies on diesel and ATF were pared and a Rs 6/L cess on the export of petrol was completely stripped.

The windfall tax on crude oil was pared by about 27% to Rs 17,000/tonne.

Read Also: Centre Slashes Windfall Tax on Crude, Scraps Export Duty on Petrol: Here’s Why

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