Windfall Profit Tax: The hike comes at a time when the government, in its previous notification, slashed the windfall tax to Rs 1,700 per tonne on domestically produced crude oil.
The Centre on Monday resorted to increasing the windfall profit tax on a bunch of commodities. As per an official notification issued by the Central Board of Indirect Taxes and Customs, the windfall tax on domestically produced crude oil, aviation turbine fuel and high-speed diesel have been hiked.
According to the revised rates, the windfall tax on crude oil has been raised to Rs 2,100 per tonne. The hike comes at a time when the government, in its previous notification, slashed the windfall profit tax to Rs 1,700 per tonne on domestically produced crude oil. While the notification was issued on Monday, the new rates come into effect from today, January 3.
In addition to this, the government has also hiked the windfall tax on aviation fuel to Rs 4.5 per litre from the existing rate of Rs 1.5 per litre. However, it must be noted that the special additional excise duty on petrol continues the same i.e., unchanged and ‘nil.’
As far as the export of diesel is concerned, the notification mentions that the windfall tax on high-speed diesel for exports has also been increased. The hike reads to Rs 7.5 per litre from the existing Rs 5 per litre. Previously, even this commodity went through a rate cut when the centre revised the rate to Rs 5/litre from Rs 8/litre.
It must be noted that the government reviews the windfall tax and associated rates in a fortnightly manner. Usually, changes, if any, are informed via an official notification alone.