According to a government notification issued on Friday, the windfall tax on crude has been reduced to Rs 10,500 from Rs 13,300 per tonne, and for diesel it has been reduced from Rs 13.5 per litre to Rs 10 per litre.
The Centre revised windfall tax on crude and diesel on Friday.
According to a government notification issued on Friday, the windfall tax on crude has been reduced to Rs 10,500 from Rs 13,300 per tonne.
The government has revised the export duty on ATF to Rs 5 per litre from Rs 9 per litre and the diesel export duty has been reduced to Rs 10 per litre from Rs 13.5 litre.
The new rates will be applicable from Saturday (September 17), the government said.
A windfall tax is a one-off tax imposed by a government on a company. When a company benefits from something that they are not responsible for, the financial gain that ensues is called windfall profits.
Governments, typically, levy a one-time tax over and above the normal rates of tax on such profits, and that is called windfall tax.
India imposed windfall taxes on July 1, joining a growing number of nations that taxes super normal profits of energy companies. But international oil prices have cooled since then, eroding profit margins at both oil producers and refiners.
At the time of imposing the windfall tax, the government had stated that the objective behind the move was to shore up domestic supplies as refiners were preferring to export than to meet the local requirements.
Also Read: Banking will play biggest role in making India a developed nation by 2047: Nirmala Sitharaman
First Published: IST