The government has increased the windfall profit tax on the export of diesel. After the new changes, the windfall profit tax has been reduced to Re 1 per liter, while the tax on domestically produced crude oil has been cut. This information was given in the order issued by the government. It was told that the duty on crude oil production of oil producing companies like ONGC has been reduced from Rs 4,400 per tonne to Rs 3,500 per tonne.
Re 1 per liter
Tax on diesel exports has been increased from Rs 0.50 per liter to Re 1 per litre. There is no change in the tax levied on Aviation Fuel ATF and it remains nil. It was said in the order that the new tax rate will come into effect from March 21. Crude oil extracted from land and sea is refined and converted into different fuels like petrol, diesel and aircraft fuel.
There may be a decrease in diesel exports
On March 4, the government reduced the windfall profit tax on diesel exports to Rs 0.50 per liter and reduced the tax on aviation fuel ATF to zero. In July last year, for the first time, windfall profit tax was imposed on oil producing companies. After this change, there may be a decrease in the export of diesel and its effect can be seen in the domestic market as well.
