Centre hikes windfall profit tax on export of diesel, ATF; raises tax on domestic crude oil
New Delhi, October 15, 2022
Finance Ministry hikes export taxes on crude, diesel and ATF after lowering tax rates for two consecutive fortnights mirroring fall in global crude prices
The government on Saturday hiked the windfall profit tax on the export of diesel to ₹12 per litre and that on jet fuel exports to ₹3.50 a litre with effect from October 16.
The levy on domestically produced crude oil too has been increased by ₹3,000 per tonne to ₹11,000.
After lowering the tax rates for two consecutive fortnights mirroring fall in global crude prices, the Finance Ministry has brought about a hike in export taxes on crude, diesel and ATF, in its latest review.
At the seventh fortnightly review, the government raised the windfall profit tax on the export of diesel to ₹12 per litre from ₹6.5 a litre, and brought back the levy on ATF (Aviation Turbine Fuel) exports at ₹3.50 per litre, from nil, Union Finance Ministry said in a notification.
While private refiners Reliance Industries Ltd. and Rosneft-based Nayara Energy are the principal exporters of fuels like diesel and ATF, the windfall levy on domestic crude targets producers like State-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.
India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies. But international oil prices have cooled since then, eroding the profit margins of both oil producers and refiners.