Government cuts windfall tax on petroleum crude

Government has cut the windfall tax on petroleum crude to ₹4,100 ($50.14) per tonne from ₹6,400 per tonne

The Centre has cut the windfall tax on petroleum crude to ₹4,100 ($50.14) per tonne from ₹6,400 per tonne, effective from May 2, according to a government notification.

The government left the windfall tax on petrol, diesel and aviation turbine fuel at zero.

Also read: Govt hikes windfall tax on crude oil, export of diesel, ATF

The government revises tax rates fortnightly based on oil price fluctuations.

On April 4, India cut the windfall tax on petroleum crude to zero from ₹3,500 rupees per tonne previously. The levy on crude was hiked to ₹6,400 rupees per tonne on April 19.

Also read: Scrap windfall tax: FICCI tells Centre

India last July imposed the windfall tax on crude oil producers and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.