In line with firming global oil prices, the central government has extended the seven-month-old windfall profit tax imposed on exports of domestically produced crude as well as diesel and aviation turbine fuel (ATF), an official said. Statement dated 3. February told.
According to the notice, the levy has been increased on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC). 5,050 per tonne 1,900 per ton.
Crude oil is pulled out of the land and under the sea, refined and converted into fuels such as petrol, diesel and ATF.
Center has also raised Tax export of diesel from 7.5 per liter 5, and similar on foreign shipments of ATF from 6 liters 3.5 liters.
The new tax rates have come into effect from Saturday, February 4.
The levy on both domestic crude oil and fuel exports is now at last month’s low.
Windfall tax will continue for now
Top government officials have said it is expected to pay a windfall tax on exports of domestically produced crude oil and fuel. 25,000 crore in the current financial year ending March 31, 2023.
An official was quoted as saying that the levy will continue as international oil prices are on the rise again PTI,
During the last fortnightly review on January 17, the tax rates were cut following softening international oil prices. Since then global oil prices have firmed up, necessitating an unexpected tax increase.
The country first imposed a windfall profits tax on July 1 last year, joining a growing number of countries that tax the super ordinary profits of energy companies.
At that time, the export duty of 6 per liter ($12 per barrel) each were imposed on petrol and ATF. 13 liters on diesel ($26 a barrel).
A A windfall profit tax of 23,250 rupees per tonne ($40 per barrel) was also imposed on domestic crude oil production.
Export tax on petrol was abolished in the very first review.
The tax rates are reviewed every fortnight based on the average oil prices in the preceding two weeks.
Reliance Industries, which operates the world’s largest single-location oil refinery complex at Jamnagar in Gujarat, and Rosneft-backed Nayara Energy are the primary exporters of the fuel in India.
The Center taxes windfall profits made by oil producers on any price they get above the cap of $75 a barrel.
The levy on fuel exports is based on the crack or margin that refiners earn on overseas shipments. These margins are mainly the difference between the price and cost of oil internationally.
with agency inputs
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