The Centre on Monday increased the windfall tax on domestically produced crude oil, aviation turbine fuel, and high-speed diesel.
The windfall tax on crude oil has been raised to Rs 2,100 per tonne from the existing Rs 1,700, as per a notification issued by the Central Board of Indirect Taxes and Customs. The revised tax rate is effective from January 3.
The windfall tax on aviation turbine fuel has been hiked to Rs 4.5 per litre from the existing Rs 1.5 per litre.
The windfall tax on high-speed diesel for exports has also been raised to to Rs 7.5 per litre from Rs 5.
The special additional excise duty on petrol continues to remain unchanged at ‘nil’.
India, the world’s largest consumer and importer of oil, has been buying Russian crude barrels at well below a $60 price cap agreed by the West.
The country in July imposed the windfall tax on crude oil producers and levies on exports of petrol, diesel and aviation fuel after private refiners sought overseas markets to gain from robust refining margins, instead of selling at lower-than-market rates in the country.
The Centre had maintained that the levy was introduced in view of the windfall gains made by domestic crude producers and refiners due to high global crude and product prices. The tax rates are revised fortnightly. Many other countries began taxing supernormal profits on energy companies in 2022 as well.