The government has slashed windfall gains tax on domestic crude oil to nil from Rs 3,500 per tonne, while halving the levy to 50 paise per litre on diesel exports from Tuesday, according to a government notification issued by the finance ministry.
The levies on export of aviation turbine fuel (ATF) and petrol continue to be nil. This is the 18th fortnightly revision of the duties.
Windfall tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.
The cut in taxes comes in the backdrop on decline in crude prices in March. Brent prices fell below the $75 per barrel mark last month amid concerns of a banking crisis in the US and its economic fallout.
Earlier on 20 March, 2023 the government reduced the windfall tax on domestic production of crude petroleum to Rs 3,500 per tonne from Rs 4,400 per tonne.
The windfall profit tax was first imposed on July 1, 2022 after crude oil prices soared in the aftermath of the Russia-Ukraine war, fetching large profits for oil producers. The government reviews the tax rates every fortnight to calibrate the tax mop-up.
