The Centre has cut the windfall tax on export of domestically produced crude oil and diesel and aviation turbine fuel for exports. The windfall tax on domestically produced crude oil has been cut to Rs 4,350 per tonne from the previous `5,050 per tonne.
The tax on export of aviation turbine fuel has been cut to Rs 1.50 per litre from the earlier Rs 6 per litre. The tax on diesel exports has also been cut to `2.50 per litre (inclusive of cess) from the earlier Rs 7.5 per litre.
The revision is effective from Thursday, according to notifications by the Central Board of Indirect Taxes and Customs.
According to PPAC data, the price of the Indian basket of crude oil has been firming up in recent weeks and was at $83.46 per barrel as on February 15 from an average $ 80.92 per barrel in January and $78.1 per barrel in December 2022.
The Centre had imposed special additional excise duty of `23,250/ tonne on crude and export taxes on petrol, diesel and ATF at `6/ litre, `13/ litre and `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.
The government has indicated that the levy will continue until prices of crude oil remain significantly high and expects to raise about `25,000 crore from the tax this fiscal as well as a similar amount in the next fiscal.