The new tax charges come into impact from March 21, the order stated. (Representative picture/Reuters)
The tax charges are reviewed each fortnight primarily based on common oil costs within the earlier two weeks.
The authorities has hiked the windfall revenue tax on export of diesel to Re 1 per litre whereas the levy on domestically produced crude oil has been minimize by a fifth.
The levy on crude oil produced by corporations resembling Oil and Natural Gas Corporation (ONGC) has been lowered to Rs 3,500 per tonne from Rs 4,400 per tonne, information company PTI reported citing the order dated March 20.
The authorities raised the tax on export of diesel to Re 1 per litre from Rs 0.50, and the identical on abroad shipments of ATF stays at nil.
The new tax charges come into impact from March 21, the order stated.
Crude oil pumped out of the bottom and from beneath the seabed is refined and transformed into fuels like petrol, diesel and aviation turbine gasoline (ATF).
The tax charges are reviewed each fortnight primarily based on common oil costs within the earlier two weeks.
India first imposed windfall revenue taxes on July 1 final 12 months, becoming a member of a rising variety of nations that tax tremendous regular earnings of vitality corporations. At that point, export duties of Rs 6 per litre (USD 12 per barrel) every had been levied on petrol and ATF and Rs 13 a litre (USD 26 a barrel) on diesel.
A Rs 23,250 per tonne (USD 40 per barrel) windfall revenue tax on home crude manufacturing was additionally levied.
The export tax on petrol was scrapped within the very first evaluation and that on ATF was achieved away with on the final evaluation on March 4.
The authorities levies the Special Additional Excise Duty (SAED), also referred to as Windfall tax on windfall earnings made by oil producers on any value they get above a threshold of USD 75 per barrel.
The levy on gasoline exports relies on cracks or margins that refiners earn on abroad shipments. These margins are primarily a distinction between the worldwide oil value realised and the associated fee.
(With company inputs)
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