Govt cuts windfall gains tax on domestic crude oil to nil

 


Team Blitz India

NEW DELHI: The government has cut windfall gains tax on domestically-produced crude oil to nil while continuing the rate at zero on the export of diesel and ATF.

The government has slashed the special additional excise duty (SAED) on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) to nil from Rs 4,100 per tonne, an official order dated May 15 said.

This is the second time that the levy, which was introduced in July last year in the form of a cess to tax supernormal gains of oil producers and fuel exporters, has been cut to nil for domestically-produced oil.

The tax was cut to nil in early April but was brought back in the second half of that month with a Rs 6,400 per tonne levy.

The tax on the export of diesel, which was cut to zero on April 4, continues to stay at that level. Similarly, the levy on the export of jet fuel (ATF), which was cut to nil from March 4, stays the same.




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