Govt slashes windfall profit tax on domestic crude oil, ATF, diesel export

The government on late Friday slashed windfall gains tax, lowering the duties and cess on domestic crude and export of aviation turbine fuel and diesel following a decline in international crude oil price. 

According to the Central Board of Indirect Taxes and Customs (CBIC) notification, it has cut the tax on domestically produced crude oil to Rs 10,500 a tonne from Rs 13,300 earlier. 

Instead of Rs 13.5 per litre, the diesel will now export at Rs 8.5/litre. Similarly, ATF shipments will cost Rs 5 a litre, from Rs 9 per litre.

The new rates will be effective September 17. 

The move follows moderation in the Indian basket of crude to $92.53/barrel on average in September compared with the August average of $97.4/barrel. 

It is the fifth revision of the windfall tax since its implementation on July 1.

In the fourth review on August 31, the government raised the windfall taxes, with diesel exports attracting a tariff of Rs 13.5/litre, up from Rs 7. Similarly, shipments of ATF were subjected to an impost of Rs 9/litre, up from Rs 2. The government has also raised the tax on domestically produced crude oil to Rs 13,300/tonne from Rs 13,000.

On July 1, the Centre imposed special additional excise duty of Rs 23,250/tonne on crude and export taxes on petrol, diesel and ATF at Rs 6/litre, Rs 13/litre and Rs 6/litre, respectivelyThe tax on petrol was removed subsequently.