The Centre has reduced the windfall tax on crude oil to ₹9,500 a tonne from ₹11,000 earlier. This change is effective from November 2, according to a government notification.
Simultaneously, the Centre has raised the special additional excise duty on the export of aviation turbine fuel from ₹3.5 a litre to ₹5 a litre. Also, the government notification showed that the special additional excise duty on the export of diesel has increased from ₹12 a litre to ₹13 a litre.
It maybe recalled that windfall tax, levied as special additional excise duty, is aimed at absorbing the super profits earned by domestic crude oil producers. This windfall tax is revised on a fortnightly basis.
The Centre has gone in for a cut in the windfall tax on the sale of locally produced crude oil at a time when global oil prices have largely remained flat at around $95 per barrel.