Windfall tax on crude hiked to Rs 2,300 per tonne

The centre on Tuesday hiked windfall tax on domestically produced crude oil to Rs 2,300 per tonne from existing Rs 1,300 per tonne.

It cut the export duty on the diesel to nil from 0.50 per litre and also reduced duty on Aircraft Turbine Fuel (ATF) to nil from earlier Re 1 per litre.

The new rates will be effective January 2, central board of indirect taxes and customs (CBIC) said in a notification issued on Monday night.


In its last review on December 18, the government had sharply cut the windfall profit tax on crude oil produced in the country to Rs 1,300 per tonne from Rs 5,000 earlier. The export duty on diesel was also cut from Re one per litre to 0.50 while that on ATF was hiked from nil to Re one.

India had first introduced the windfall profit tax in July 2022. Back then, export duties of Rs 6 per litre each were levied on petrol and ATF, while it levied duty of Rs 13 per litre on exports of diesel.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.