Windfall profit tax on domestic crude oil cut – Times of India

NEW DELHI: The federal government on Friday minimize the windfall revenue tax on domestically produced crude oil in step with a fall in worldwide charges, and diminished the levy on export of diesel and jet gasoline (ATF).
On the fifth fortnightly assessment, the federal government diminished tax on domestically-produced crude oil to Rs 10,500 per tonne from Rs 13,300 per tonne.
The levy on the export of diesel was diminished to Rs 10 per litre from Rs 13.5. Additionally, the tax on aviation turbine gasoline (ATF) exports was minimize to Rs 5 a litre from Rs 9 with impact from September 17, in accordance with a finance ministry notification issued late Friday evening.
Worldwide oil costs have fallen to six-month lows this month, resulting in a discount within the windfall revenue tax.
The basket of crude oil that India buys has averaged $92.67 per barrel in September as in opposition to $97.40 within the earlier month.
Whereas non-public refiners Reliance Industries Ltd and Rosneft-based Nayara Power are the principal exporters of fuels like diesel and ATF, the windfall levy on home crude targets producers like state-owned Oil and Pure Fuel Company (ONGC) and Vedanta Ltd.
India first imposed windfall revenue taxes on July 1, becoming a member of a rising variety of nations that tax tremendous regular income of vitality firms. However worldwide oil costs have cooled since then, eroding the revenue margins of each oil producers and refiners.
Export duties of Rs 6 per litre ($12 per barrel) had been levied on petrol and aviation turbine gasoline and Rs 13 a litre ($26 a barrel) on diesel.
A Rs 23,250 per tonne ($40 per barrel) windfall revenue tax on home crude manufacturing was additionally levied.
The duties had been partially adjusted within the earlier 4 rounds on July 20, August 2, August 19 and September 1, and had been eliminated for petrol.

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