Govt Cuts Crude Oil Windfall Tax To Zero

The central government has cut the windfall tax on petroleum crude to nil per tonne from Rs 4,100. As per a government notification, this will be effective from Tuesday. 

Meanwhile, the government left the windfall tax on petrol, diesel and aviation turbine fuel at zero. The taxes are revised on a fortnightly basis according to the oil price fluctuations.

The government reduced the windfall tax on petroleum crude on 1 May from Rs 6,400 per tonne to Rs 4,100 (USD 50.14) per tonne. On 19 April, the tax on crude was raised to Rs 6,400 per tonne. India reduced the windfall tax on crude oil from Rs 3,500 per tonne to zero on 4 April.

India implemented the windfall tax on crude oil producers in July and increased the duty on the exports of petrol, diesel and aviation fuel in response to private refiners who preferred to profit from high refining margins in foreign markets to domestic sales.