The government on Friday cut the windfall profit tax on locally produced crude oil in line with a fall in international rates, and reduced the levy on export of diesel and jet fuel (ATF).<\/p>\n
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Photograph: Carlos Garcia Rawlins\/Reuters<\/span><\/p>\n At the fifth fortnightly review, the government reduced tax on domestically-produced crude oil to Rs 10,500 per tonne from Rs 13,300 per tonne.<\/p>\n The levy on the export of diesel was reduced to Rs 10 per litre from Rs 13.5. Also, the tax on Aviation Turbine Fuel (ATF) exports was cut to Rs 5 a litre from Rs 9 with effect from September 17, according to a finance ministry notification issued late Friday night.<\/p>\n \u00a0<\/p>\n International oil prices have fallen to six-month lows this month, leading to a reduction in the windfall profit tax.<\/p>\n The basket of crude oil that India buys has averaged $92.67 per barrel in September as against $97.40 in the previous month.<\/p>\n While private refiners Reliance Industries and Rosneft-based Nayara Energy are the principal exporters of fuels like diesel and ATF, the windfall levy on domestic crude targets producers like state-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.<\/p>\n India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies.<\/p>\n But international oil prices have cooled since then, eroding the profit margins of both oil producers and refiners.<\/p>\n Export duties of Rs 6 per litre ($12 per barrel) were levied on petrol and aviation turbine fuel and Rs 13 a litre ($26 a barrel) on diesel.<\/p>\n A Rs 23,250 per tonne ($40 per barrel) windfall profit tax on domestic crude production was also levied.<\/p>\n The duties were partially adjusted in the previous four rounds on July 20, August 2, August 19 and September 1, and were removed for petrol.<\/p>\n<\/div>\n[ad_2]\n<\/p>\n News From This Website <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"