New Delhi (The Hawk): The windfall tax on crude oil has been lowered by the Center from $11,000 per tonne to $9,500 per tonne. According to a government notification, this adjustment will take effect on November 2.
The special supplementary excise duty on the export of aviation turbine fuel has also been increased by the Center from 3.5 to 5 rupees per litre. The government statement also noted an increase in the special supplementary excise duty on diesel exports from 12 to 13 cents per litre.
You may remember that the purpose of the windfall tax, which is imposed as a special supplementary excise duty, is to absorb the enormous profits made by domestic crude oil companies. This windfall tax is updated every two weeks.
At a time when the price of crude oil in the world has generally stayed stable at roughly $95 per barrel, the Center has pushed for a reduction in the windfall tax on the sale of locally produced crude oil.
(Inputs from Agencies)