The finance ministry has hiked the windfall tax on export of domestically produced crude oil and diesel and aviation turbine fuel for exports in line with the rising global prices.
The windfall tax on domestically produced crude oil has been hiked to Rs 5,050 per tonne from Rs 1,900 per tonne, int eh latest fortnightly review.
The tax on export of aviation turbine fuel has been raised to Rs 6 per litre from the previous Rs 3.5 per litre while that on diesel exports has been increased to Rs 7.5 per litre (inclusive of cess) from Rs 5 per litre earlier.
The revision is effective from February 4, according to recent notifications by the Central Board of Indirect Taxes and Customs.
The windfall tax is expected to fetch the Centre about Rs 25,000 crore this fiscal and officials have said it will continued to be levied until crude oil prices remain high. They expect the tax to fetch about Rs 25,000 crore in the next fiscal as well.
According to PPAC data, the crude oil price of the Indian basket has been rising after it touched a low of $78.1 per barrel in December. In January, it was up at $ 80.92 per barrel and has risen further to $82.17 per barrel in February.
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. The rates are reviewed every fortnight to keep them in sync with the global crude oil prices.