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The central government has halved the windfall tax on crude oil refiners. Export duty on diesel has also been reduced.
Due to the economic sanctions of the world countries on Russia, private oil companies used to buy crude oil from that country at a low price, refine it and export it as petrol and diesel to European countries. Hence, those companies made huge profits.
From July 1, the central government is imposing a special tax on the huge profits made by the companies due to the profit environment of the market. Market capitalization is adjusted every two weeks to reflect foreign market conditions.
A meeting in this regard was held in Delhi on Thursday. In this, market profit tax on domestically produced crude oil has been reduced from Rs.10,200 to Rs.4,900 per tonne. Export tax on diesel has been reduced from Rs 10.5 to Rs 7 per litre. Out of which Rs.1.5 per liter is cess for road infrastructure development.
It has been announced that the export tax on aviation fuel will continue at Rs.5 per litre. The revised rates will come into effect from December 2, the Union Finance Ministry said.
Initially, export tax was levied at Rs 6 per liter on petrol and jet fuel and Rs 13 per liter on diesel. Market profit tax on crude oil stood at Rs 23,250 per tonne. Later those taxes were gradually reduced. Export duty on petrol has been completely abolished.