The Centre has slashed the windfall tax on domestically produced crude oil to Rs 3,500 per tonne in the latest fortnightly review. The tax was earlier levied at `4,400 per tonne. It also marginally hiked the tax on diesel meant for exports to `1 per litre from `0.5 per litre earlier while continuing the exemption on exports of aviation turbine fuel and petrol.
The new rates are effective from Tuesday, the Central Board of Indirect Taxes and Customs said in two separate notifications.
Amidst the global turmoil in banking systems, the price of crude oil has been softening in recent weeks. According to data with the PPAC, the price of the Indian basket of crude oil was at $70.69 per barrel on March 20. It has averaged at $80.02 per barrel in March, down from an average $82.28 in February.
Earlier on March 4, the government had marginally hiked the windfall tax on exports and had reduced the levy on diesel for exports.
The Centre had imposed special additional excise duty of Rs 23,250/ tonne on crude and export taxes on petrol, diesel and ATF at Rs 6/ litre, Rs 13/ litre and Rs 6/ litre, respectively from July 1, 2022. It subsequently removed the tax on petrol.