India may cut cess on ATF, diesel in fifth revision of windfall tax, sources say
India is likely to issue a notification on revised windfall gains tax, where New Delhi is expected to lower a raft of duties and cess amid a decline in global crude oil prices.
India may cut cess on domestic crude production, ET Now reported citing unnamed sources. New Delhi may also lower duty on export of ATF and diesel, the sources said.
Overseas shipment of petrol will likely continue to be exempted from windfall tax, they added.
This will be the fifth revision of windfall tax since it’s implementation on July 1.
The government has maintained that the levy was introduced in view of the windfall gains made by the domestic crude producers and refiners due to high global crude and product prices.
The government had said it will review the windfall levy on locally produced crude oil every fortnight.
The levy was expected to compensate for the reduction in the excise duty on petrol and diesel to provide relief to consumers. But the reduction in the windfall cess from the initial levels is expected to reduce the realisation for the government.
On September 1, the government had increased the windfall tax on domestic crude oil to Rs 13,300 per tonne from earlier Rs 13,000 per tonne. It had also revised the cess on export of aviation turbine fuel (ATF) to Rs 9 per litre from Rs 2 per litre and increased additional excise duty on export of diesel has been increased from to Rs 12 per litre from Rs 6 per litre.
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