Centre increases windfall tax on petroleum crude
windfall tax on petroleum crude to 10,000 rupees per tonne from 6,700 rupees per tonne, according to a government notification.
The increase will come into effect from September 16.
The government has cut the windfall tax on aviation turbine fuel to 3.50 rupees per litre from 4 rupees per litre.
Two weeks ago, the Centre had cut the windfall tax or special additional excise duty on petroleum crude to Rs 6,700 per metric ton from Rs 7,100.
The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks. India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax supernormal profits of energy companies.
The government levies tax on windfall profits made by oil producers on any price they get above a threshold of $75 per barrel.
The levy on fuel exports is based on cracks or margins that refiners earn on overseas shipments. These margins are primarily a difference between the international oil price realised and the cost.
