Centre cuts windfall tax on crude oil to Rs 4,350/tn from Rs 5,050/tn

NEW DELHI: The central government has cut the windfall profit tax on domestically produced crude oil to Rs 4,350 per tonne from Rs 5,050 per tonne earlier.

According to a notification from the central government, it was learnt that the additional excise duty on aviation turbine fuel (ATF) was also cut to Rs 1.5 per litre from Rs 6 per litre earlier.

In the notification, the Centre also reduced windfall tax on diesel export to Rs 2.50 per litre from Rs 7.5 per litre. The new rates will come into effect today.

According to the notification, petrol will continue to have zero excise duty. To address the shortage of energy products on the domestic market, the Indian government for the first time had added a special additional excise duty on the export of petrol and diesel, known as the windfall tax, on July 1, 2022.

A windfall tax is a higher tax rate levied by governments against certain industries when economic conditions allow those industries to attract above-average profits.

In November 2022, the Centre slashed the windfall tax on the export of crude oil from Rs 11,000 to Rs 9,500 per tonne, as per an official gazette notification by the Ministry of Finance.

However, the windfall tax on the export of aviation turbine fuel (ATF) was hiked from Rs 3.50 per litre to Rs 5, and from Rs 12 per litre to Rs 13 for diesel.

In an exclusive interview with ANI, CBIC Chairman Vivek Johri on Tuesday said, "We can assume an average monthly GST collection of Rs 1.45 lakh crore to Rs 1.5 lakh crore." He added, "Rs 1.5 lakh crore has become the new normal and we are confident that we will cross this figure in the coming year."

The Central Board of Indirect Taxes & Customs (CBIC) under the Department of Revenue, Ministry of Finance, is responsible for the formulation of policy relating to levy and collection of Indirect taxes namely, Customs duty, Central Excise duty Central Goods and Service tax.

Vivek Johri said that Rs 1.5 lakh crore in goods and services tax (GST) collection has become the new normal and that the Board is confident that it will cross this figure in the coming year.