Centre hikes windfall profit tax on export of diesel, ATF

With effect from October 16, the government increased the windfall profit tax on the export of jet fuel and diesel by 12 cents per litre each on Saturday. The tax on crude oil produced domestically has also been raised by 3,000 rupees per tonne to 11,000 rupees. In its most recent assessment, the finance ministry increased export taxes on oil, diesel, and ATF after reducing tax rates for two consecutive fortnights to coincide with the decline in world petroleum prices.

According to a statement from the finance ministry, the government increased the windfall profit tax on diesel exports at the seventh weekly review from 5 to 12 cents per litre and reinstated the tax on ATF (Aviation Turbine Fuel) exports at 3.50 cents per litre from zero. While the main exporters of fuels like diesel and ATF are private refiners Reliance Industries Ltd and Rosneft-based Nayara Energy, the windfall duty on domestic crude targets producers like the state-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.

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