The Centre on Monday resorted to slashing the windfall profit tax on a bunch of commodities like it does every fortnight. 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 (ATF) and high-speed diesel have been reduced.
After a gap of two weeks, as per the revised rates, the windfall tax on crude oil has been slashed to Rs 1,900 per tone from the previous Rs 2,100 per tonne. The fall in this rate comes at a time when the government, in its previous notification, hiked the windfall profit tax to Rs 2,100 per tone on locally produced crude oil, from the previous Rs 1,700 per tonne.
In addition to this, the government has also slashed the windfall profit tax on aviation fuel to Rs 3.5 per litre from the previous rate of Rs 4.5 per litre. It has also reduced the export duty on diesel to Rs 5 per litre, including cess, from the previous levy of Rs 6.5 per litre.
It must be noted that the revised rates come into effect from Tuesday. The government tends to review the windfall tax and associated rates in a fortnightly manner. Usually, changes, if any, are informed via an official notification.