Govt cuts windfall tax on petrol, diesel, jet fuel, crude oil

The government on Wednesday (July 20) slashed the windfall tax on petrol, diesel, jet fuel and crude oil following a decline in international rates.

It scrapped a ₹6 a litre tax on the export of petrol and reduced the same on ATF from ₹6 a litre to ₹4. Besides, the tax on diesel has been reduced to ₹11 from ₹13 per litre, according to finance ministry notifications.

Also read: Windfall tax: Government gets the rationale terribly wrong

Further, the ₹23,250 per tonne additional tax on crude oil produced domestically has been cut to ₹17,000 per tonne.

On July 1, the Ministry of Finance said that a cess of ₹23,250 per tonne (by way of special additional excise duty – SAED) has been imposed on crude oil produced domestically. With this, India joined a select league of nations globally that have taxed windfall gains accruing to oil companies from soaring energy prices.

Also read: Windfall tax to recover ₹1 lakh crore revenue lost in excise cuts on fuel: Report

The government also slapped a ₹6 per litre tax on the export of petrol and jet fuel (ATF) and ₹13 a litre on the export of diesel effective July 1.