Image for representation purpose only. file | Photo credit: PV Shivakumar
Center has cut unexpected tax ₹6,400 a tonne on petroleum crude to ₹4,100 ($50.14) a tonne, effective May 2, according to a government notification.
The government left the windfall tax on petrol, diesel and aviation turbine fuel at zero.
Read also: Govt hikes unprecedented tax on export of crude oil, diesel, ATF
The government revises tax rates every fortnight based on fluctuations in oil prices.
On 4 April, India reduced the windfall tax on petroleum crude to nil from Rs 3,500 per tonne earlier. The levy on crude was increased to Rs 6,400 per tonne on April 19.
Read also: Scrap windfall tax: FICCI tells Center
India imposed an unprecedented tax on crude producers last July and raised levies on exports of gasoline, diesel and aviation fuel as private refiners looked to profit from strong refining margins in overseas markets rather than selling at home.