Center cuts unexpected tax on domestic crude

For the last two weeks, there has been an additional duty on the sale of crude oil produced in India. 17,750 per tonne.

Center has also revised the cess on export of Aviation Turbine Fuel (ATF) 2 per litre. Cess has not been levied on ATF exports for the last two weeks.

Special additional excise duty on export of diesel has been increased from 5 6 per litre, plus a cess 7 per litre.

Petrol exports will continue without levying windfall tax. The new rates are effective from August 19.

Center imposed export duty on July 1 Rs 6 per liter on petrol and ATF and a 13 liter duty on export of diesel. an unexpected tax 23,250 per tonne was imposed on the sale of domestic crude.

The taxes were first reviewed on 20 July, in which 6 per liter duty on petrol export was abolished and tax on export of diesel and jet fuel (ATF) was reduced. 11 more 4 respectively.

Taxes on domestically produced crude oil also cut 17,000 per tonne on July 20.

Revenue Secretary Tarun Bajaj had said after the tax was imposed on July 1, that it would be reviewed every 15 days, taking into account other factors, including foreign exchange rates and global crude oil prices.

The government imposed an unexpected tax on July 1 for the first time amid high profits made by oil and gas companies due to high energy prices due to the Russia-Ukraine conflict. Domestic producers sell crude oil to refiners at benchmark prices at international prices. Brent crude prices were largely at multi-year highs from a month before February.

Crude oil prices have of late slipped to a six-month low amid fears of a recession. At the time of writing the article, Brent’s October contract on the Intercontinental Exchange stood at $96.09 a barrel, up 2.61% from the previous close.

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