Centre hikes tax on windfall profit on crude oil, export of diesel, jet fuel
Hindustan TimesThe government on Saturday hiked windfall tax on domestically produced crude oil by more than a third while doubling the rate on export of diesel and re-introducing the levy on overseas shipment of jet fuel in line with rise in international oil prices. Centre hikes tax on windfall profit on crude oil, export of diesel, jet fuel The tax on crude oil produced by firms such as state-owned Oil and Natural Gas Corporation was increased to ₹11,000 per tonne beginning October 16 from ₹8,000, a government notification showed. The international price of petrol, which was used as reference for the levy of windfall tax on exports, was USD 148.82 per barrel in June but has since declined to USD 91.37 this month. While private refiners Reliance Industries Ltd 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 ONGC and Oil India Ltd as well as private players such as Vedanta Ltd. India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies.