The central government has reduced windfall tax on locally produced crude oil by half and revised the levy on diesel exports.
The windfall tax on domestic crude has been reduced to Rs 4,900 per tonne, from the earlier rate of Rs 10,200 per tonne set on Nov. 17, the Ministry of Finance said in a notification.
The windfall tax on diesel exports has been reduced to Rs 6.5 per litre from the earlier rate of Rs 10.5 a litre. The levy will also include road infrastructure cess of Rs 1.5 per litre, taking the tax rate to Rs 8 per litre.
The new rates for windfall tax will come into effect from Dec. 2.
The windfall tax on aviation turbine fuel has been retained at Rs 5 per litre.
Windfall tax was introduced on July 1 and the central government has been revising rates every fortnight.