Govt Lowers WINDFALL Income Tax on Domestic Crude Oil; leftovers LEVY on jet fuel

New Delhi: The government on Saturday cut the snap profit tax on locally produced crude oil and diesel, in line with a drop in international tariffs, and removed the tax on jet fuel exports effective Oct. 2. review, the government lowered the tax on domestically produced crude oil to Rs 8,000 per tonne from Rs 10,500 per tonne. The levy on diesel exports was reduced to Rs 5 per liter from Rs 10 per litre.

ALSO READ | SBI increases the borrowing rate by 50 bp after the increase in the repo rate of RBI; Check details

The tax at the rate of Rs 5 per liter on aviation turbine fuel (ATF) exports was lifted with effect from Oct. 2, according to a Ministry of Finance notice issued late Saturday night. The cut in tax rates follows the easing of crude oil prices in international markets.

ALSO READ | Banks will be closed for 7 days in these cities starting tomorrow

While private refiners Reliance Industries Limited and Rosneft-based Nayara Energy are the main exporters of fuels such as diesel and ATF, the windfall tax on domestic crude is aimed at producers such as state-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Limited.

India first imposed contingency income taxes on July 1, joining a growing number of countries taxing supernormal profits from energy companies. But international oil prices have since cooled, eroding the profit margins of both oil producers and refiners.

Export duties of Rs 6 per liter ($12 per barrel) were levied on gasoline and ATF and Rs 13 per liter ($26 per barrel) on diesel. An unexpected profit tax of Rs 23,250 per tonne (USD 40 per barrel) was also levied on domestic crude oil production. In the previous five rounds on July 20, August 2, August 19, September 1 and September 16, excise duties were partially adjusted and abolished for petrol.

Source link
Zee News

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous post Brazil 2022 elections: it’s Jair Bolsonaro vs Lula da Silva, explained
Next post ‘Trump of tropics’ Jair Bolsonaro is endorsed by… no points to guess