Govt hikes windfall revenue tax on export of diesel, ATF; raises tax on home crude oil

The authorities on Saturday hiked the windfall revenue tax on the export of diesel to Rs 12 per litre and that on jet gasoline exports to Rs 3.50 a litre with impact from October 16.

The levy on domestically produced crude oil too has been elevated by Rs 3,000 per tonne to Rs 11,000.

After decreasing the tax charges for 2 consecutive fortnights mirroring fall in international crude costs, the finance ministry has led to a hike in export taxes on crude, diesel and ATF, in its newest evaluate.

At the seventh fortnightly evaluate, the federal government raised the windfall revenue tax on the export of diesel to Rs 12 per litre from Rs 5 a litre, and introduced again the levy on ATF (Aviation Turbine Fuel) exports at Rs 3.50 per litre, from nil, finance ministry mentioned in a notification.

While non-public refiners Reliance Industries Ltd and Rosneft-based Nayara Energy are the principal exporters of fuels like diesel and ATF, the windfall levy on home crude targets producers like state-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.

India first imposed windfall revenue taxes on July 1, becoming a member of a rising variety of nations that tax tremendous regular earnings of power firms. But worldwide oil costs have cooled since then, eroding the revenue margins of each oil producers and refiners.