The government has revived the windfall tax on Aviation Turbine Fuel (ATF) exports at ₹2 per litre, raised the export tax on diesel from ₹5 a litre to ₹7, and slashed the central excise levy on domestically produced crude oil to ₹13,000 per tonne as opposed to ₹17,750 levied a fortnight ago.
These new windfall taxes will kick in from August 19, a finance ministry notification said, reflecting the latest review of such taxes that were first imposed in July in view of global crude oil prices resulting in super-normal profits for petroleum producers.
India’s petroleum exports had risen 119% to $8.6 billion in June, but slipped sharply to $6.3 billion in July following the imposition of these windfall taxes, reflecting a year-on-year growth of 9.2%.
