The Finance Ministry increased export tax on crude oil, diesel and ATF after reducing the fall in crude oil prices for two consecutive fortnights.
The Finance Ministry increased export tax on crude oil, diesel and ATF after reducing the fall in crude oil prices for two consecutive fortnights.
The government on Saturday increased windfall tax on export of diesel to Rs 12 per liter and on export of jet fuel to Rs 3.50 per liter with effect from October 16.
Duty on domestically produced crude oil has also been increased by Rs 3,000 per tonne to Rs 11,000.
After reducing tax rates for two consecutive fortnights reflecting the fall in global crude oil prices, the Finance Ministry in its latest review has hiked export taxes on crude oil, diesel and ATF.
In the seventh fortnight review, the government increased windfall tax on export of diesel from ₹6.5 per liter to ₹12 per litre, and brought back the levy on export of ATF (Aviation Turbine Fuel) to ₹3.50 per litre, nil The Union Finance Ministry said in a notification.
While private refiners Reliance Industries Ltd and Rosneft-based Naira Energy are major exporters of fuels such as diesel and ATF, the unexpected levy on domestic crude targets producers such as state-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.
India imposed windfall tax for the first time on July 1, joining a growing number of countries that tax super ordinary profits of energy companies. But international oil prices have cooled since then, reducing profit margins for both oil producers and refiners.