Govt cuts windfall tax on fuel export, domestic crude oil
/PTI
New Delhi, July 20
The government on Wednesday scrapped tax on the export of petrol and cut windfall taxes on overseas shipments of diesel and ATF and on domestically produced crude oil after global oil prices fell.
While the Rs 6 a litre export duty on petrol was scrapped, the tax on the export of diesel and jet fuel (ATF) was cut by Rs 2 per litre each to Rs 11 and Rs 4, respectively.
The tax on domestically produced crude was also cut to Rs 17,000 per tonne from Rs 23,250, a move that will benefit ONGC and Vedanta.
Also, correcting the anomaly that crept in when the windfall taxes were slapped on July 1, the government exempted fuel exports from refineries located in export-focused zones from the levies.
The move will benefit Reliance Industries whose exports had become uncompetitive due to the export levies that were as high as $26 per barrel.
Reliance was up 2.7% to trade at Rs 2,507.15 on the BSE at noon. ONGC stocks also rose 4.63% to Rs 133.35, while Vedanta was up 8.36% at Rs 258.55.
The Centre imposed windfall taxes on July 1, joining a growing number of nations that taxes super normal profits of energy companies.
Export duty on petrol scrapped
- While the Rs 6 a litre export duty on petrol was scrapped, the tax on the export of diesel and jet fuel (ATF) was cut by Rs 2 per litre each to Rs 11 and Rs 4, respectively
- The tax on domestically produced crude was also cut to Rs 17,000 per tonne from Rs 23,250, a move that will benefit ONGC and Vedanta
- The government also exempted fuel exports from refineries located in export-focused zones from the levies
