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New Delhi: The government has hiked windfall profit tax on exports of domestically produced crude oil as well as diesel and aviation fuel (ATF) in line with the rise in international crude oil prices.
In an order issued by the government on February 3, it has been said that this tax on crude oil produced by companies like Oil and Natural Gas Corporation (ONGC) has been increased from Rs 1,900 per tonne to Rs 5,050 per tonne.
Crude oil is extracted from under the land and sea. This is later converted into petrol, diesel and aviation fuel.
The government has increased the windfall profit tax on diesel exports from Rs 5 per liter to Rs 7.5 per litre. Windfall profit tax on export of ATF has been increased from Rs 3.5 per liter to Rs 6 per litre. The new rates have come into effect from February 4.
Thus, the tax rates on exports of domestic crude oil and fuel have come up from their lowest levels. Last month, the tax rates had reached their lowest level.
The tax rates were cut in the last fortnightly review on January 17. At that time, the prices of crude oil had come down globally. Now the prices of crude oil have started rising again at the international level.
India first imposed windfall gains tax on July 1 last year. With this, India joined the list of countries that tax windfall profits of energy companies. At that time, an export duty of Rs 6 per liter ($12 per barrel) was imposed on petrol and ATF and Rs 13 per liter ($26 per barrel) on diesel. A windfall tax of 23,250 rupees per tonne ($40 per barrel) was imposed on domestic crude oil production.
Export tax on petrol was abolished in the very first review.
