Windfall tax on diesel export per liter of Rs. 11 done less than Rs.5

The government has once again reduced the unexpected tax on fuel in the last 15 days. Earlier on July 20, the windfall tax was reduced. The government has reduced the tax on diesel exports and increased the tax on domestically produced crude oil. Whereas the tax of 4 rupees on the export of Aviation Fuel […]
 


Windfall tax on diesel export per liter of Rs.  11 done less than Rs.5

The government has once again reduced the unexpected tax on fuel in the last 15 days. Earlier on July 20, the windfall tax was reduced. The government has reduced the tax on diesel exports and increased the tax on domestically produced crude oil. Whereas the tax of 4 rupees on the export of Aviation Fuel (ATF) has been completely abolished. Whereas zero tax has been placed on the export of petrol.

Diesel export tax has been reduced by Rs 6 per litre. Along with this, according to the official notification issued by the government, the tax on export of diesel has been reduced from Rs 11 to Rs 5 per liter.

The tax on one tonne of crude oil produced in the country has been increased from Rs 17,000 to Rs 17,750. Government companies ONGC and Vedanta and Reliance Industries will have to bear the brunt of this decision of the government.

It is noteworthy that on July 1, the government had imposed unexpected tax on the export of petrol, diesel and ATF. However, in view of the fall in the prices of crude oil in the international market, the government has decided to reduce this tax.

On July 1, the central government imposed an export tax of Rs 6 per liter on petrol and ATF and Rs 13 per liter on diesel exporters. A tax of Rs 23,250 per tonne was imposed on crude oil produced in the country. However, on July 20, the government reduced this tax. The export tax of Rs 6 per liter on petrol was abolished on July 20. Taxes on diesel and ATF exports were reduced to Rs 11 and Rs 4 respectively. Tax on domestic crude was reduced to Rs 17,000 per tonne.

State-owned companies ONGC and Oil India and private sector company Vedanta produce most of the country’s crude. All three companies will suffer due to increase in windfall tax.

Windfall tax is levied on companies that benefit from special circumstances. After Russia’s attack on Ukraine, there was a huge jump in the prices of crude oil in the international market. Due to which the oil companies benefited a lot. However, due to the fear of recession, the price of crude oil has come down below $ 100 in the international market. Due to which the government has cut windfall tax.