Centre reduces windfall tax on domestic crude oil, aviation fuel
The changes will help state-run Oil and Natural Gas Corporation and Vedanta Limited as well as top fuel exporter Reliance Industries.
The Centre on Friday reduced the windfall tax on domestically-produced crude oil and aviation fuel, ANI reported. On July 19, the Union finance ministry had levied the charges.
A windfall tax is a one-time fee imposed on a company whose profits have surged extraordinarily due to favourable market conditions.
Government slashes windfall tax on diesel, ATF | The tax on domestic crude oil export has been reduced to Rs 1,700 per tonne from the existing Rs 4,900 per tonne, as per government notification. Tax on ATF has been reduced to Rs 1.5 per litre from Rs 5 per litre. pic.twitter.com/VJeu59jkSk
— ANI (@ANI) December 16, 2022
According to a government notification, the tax on domestically-produced crude oil was reduced to Rs 1,700 per tonne from Rs 4,900 per tonne.
The tax on aviation fuel was cut down to Rs 1.5 per litre from Rs 5 per litre. The revised tax rates are effective from Friday.
The changes will help state-run Oil and Natural Gas Corporation and Vedanta Limited as well as top fuel exporter Reliance Industries.
The reduction in tax rate comes amid a 14% decline in global crude oil prices since November, reported PTI.
On Thursday, the price of Brent crude stood at $81.21 (Rs 6,600.12) after falling by 1.8%, according to Reuters. Brent is a global price benchmark for crude oils from the Atlantic basin.