Govt hikes windfall profit tax on export of diesel

New Delhi, Oct 15: The Centre has hiked the windfall profit tax on the export of diesel to Rs 12 per litre and that on jet fuel exports to Rs 3.50 a litre. It will come to effect from Sunday.

The levy on domestically produced crude oil too has been increased by Rs 3,000 per tonne to Rs 11,000.

The government has increased export taxes on crude, diesel and ATF, in its latest review.

After lowering the tax rates for two consecutive fortnights mirroring a fall in global crude prices, the finance ministry has brought about a hike in export taxes on crude, diesel and ATF, in its latest review.

At the seventh fortnightly review, the government raised the windfall profit tax on the export of diesel to Rs 12 per litre from Rs 6.5 a litre, and brought back the levy on ATF (Aviation Turbine Fuel) exports at Rs 3.50 per litre, from nil, the finance ministry said in a notification.

While private refiners Reliance Industries Ltd and Rosneft-based Nayara Energy are the principal exporters of fuels like diesel and ATF, the windfall levy on domestic crude targets producers like state-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.

India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies. But international oil prices have cooled since then, eroding the profit margins of both oil producers and refiners.