The government on Thursday, December 1,  slashed to less than half the windfall profit tax on domestically produced crude oil and also reduced the levy on diesel. The tax on crude oil produced by firms such as ONGC has been reduced to Rs 4,900 per tonne from the existing Rs 10,200 per tonne. The government also cut the rate on export of diesel to Rs 8 per litre from Rs 10.5 per litre. The new rates will be effective from December 2. The tax on crude oil produced by firms such as state-owned Oil and Natural Gas Corporation (ONGC) has been reduced to Rs 4,900 per tonne from the existing Rs 10,200 per tonne, as per a government notification issued on Thursday.

In the fortnightly revision of windfall profit tax, the government cut the rate on export of diesel to Rs 8 per litre from Rs 10.5 per litre. The levy includes Rs 1.5 per litre as road infrastructure cess.

The special additional excise duty on petrol continues to remain nil and that on aviation fuel ATF at Rs 5 a litre.

When the levy was first introduced, a windfall tax on export of petrol alongside diesel and ATF (Aviation Turbine Fuel) too was levied. But the tax on petrol was scrapped in subsequent fortnightly reviews.

Source: PTI