(PTI)
India has cut the windfall tax on locally produced crude oil and diesel, in line with the decline in international rates, and scrapped the levy on the export of jet fuel. The government reduced the tax on domestically produced crude oil to Rs 8,000 per tonne from Rs 10,500 per tonne after the sixth fortnightly review.
The levy on the export of diesel was halved to Rs 5 per litre. The Rs 5 a litre tax on aviation turbine fuel (ATF) exports was scrapped with effect from Sunday, according to a finance ministry notification issued late Saturday night. India first imposed windfall taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies.
A Rs 23,250 per tonne ($40 per barrel) windfall tax on domestic crude production was also levied. The duties were partially adjusted in the previous five rounds on July 20, August 2, August 19, September 1 and September 16 and were removed for petrol.