NEW DELHI: Indian government lowered taxes on aviation turbine fuel (ATF) exports to 5 rupees per litre from 9 rupees per litre, a government notification said yesterday.
The government also reduced windfall tax for domestically produced crude oil to 10,500 rupees ($132) per tonne from 13,300 rupees per tonne, according to the notification.
On September 1, the government had increased the windfall tax on domestic crude oil to 13,300 rupees per tonne from earlier 13,000 rupees per tonne. It had also revised the cess on export of ATF to 9 rupees per litre from 2 rupees per litre and increased excise duty on export of diesel to 12 rupees per litre from 6 rupees per litre.
Total windfall tax on diesel includes 1.5 rupees per litre road infra cess.
Overseas shipment of petrol will continue to be exempted from windfall tax.
This is the fifth revision of windfall tax since it’s implementation on July 1. The new rates will be effective from today.
The basket of crude oil that New Delhi buys has averaged $92.67 per barrel this month, falling from $97.40 in August.
The government has maintained that the levy was introduced in view of the windfall gains made by the domestic crude producers and refiners due to high global crude and product prices.
The government had said it will review the windfall levy on locally produced crude oil every fortnight.
The levy was expected to compensate for the reduction in the excise duty on petrol and diesel to provide relief to consumers. But the reduction in the windfall cess from the initial levels is expected to reduce the realisation for the government.