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

The authorities has hiked the windfall revenue tax on the export of diesel to Rs 13.5 per litre and on jet gasoline exports to Rs 9 a litre, moreover elevating the levy on domestically-produced crude oil according to the hardening of worldwide costs.

At the fourth fortnightly evaluate, the federal government raised the windfall revenue tax on the export of diesel to Rs 13.5 per litre from Rs 7 per litre. The tax on Aviation Turbine Fuel (ATF) exports too has been hiked to Rs 9 from Rs 2 per litre with impact from September 1, in line with a finance ministry notification issued late Wednesday evening.

Alongside, the tax on domestically-produced crude oil too has been hiked to Rs 13,300 per tonne from Rs 13,000.

The tax on exports has been raised as margins rose, whereas the levy on domestically-produced oil was elevated marginally on slight adjustments in worldwide oil costs and on expectations of a value rise on hopes of a manufacturing reduce by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies.

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

On July 1, export duties of Rs 6 per litre (USD 12 per barrel) had been levied on petrol and ATF and a Rs 13 a litre tax on the export of diesel (USD 26 a barrel). A Rs 23,250 per tonne windfall revenue tax on home crude manufacturing (USD 40 per barrel) was additionally levied.

Thereafter, within the first fortnightly evaluate on July 20, the Rs 6 a litre export responsibility on petrol was scrapped and the tax on the export of diesel and jet gasoline (ATF) was reduce by Rs 2 per litre every to Rs 11 and Rs 4 respectively. The tax on domestically-produced crude was additionally reduce to Rs 17,000 per tonne.

On August 2, the export tax on diesel was reduce to Rs 5 a litre and that on ATF scrapped, following a drop in refinery cracks or margins. But the levy on domestically-produced crude oil was raised to Rs 17,750 per tonne, according to a marginal improve in worldwide crude costs.

On August 19, the export tax on diesel was hiked to Rs 7 a litre, whereas a Rs 2 per litre tax on ATF was introduced again. The levy on home crude oil output was reduce to Rs 13,300 per tonne, according to the softening of crude costs.

At the fourth fortnightly evaluate on August 31, the taxes on diesel and ATF exports as additionally on domestically-produced crude oil have been raised.

Global Brent crude oil costs had been hovering round USD 105 a barrel, in opposition to USD 95 per barrel a fortnight in the past.