The central government on Tuesday hiked the windfall tax, a tax levied on an unforeseen or unexpectedly large profit, on crude petroleum producers by 4.41%, scrapped Rs 4 per litre levy on Aviation Turbine Fuel (ATF) exports, and reduced the cess on the export of diesel from Rs 11 to Rs 5 per litre.
The Centre has cut the taxes on jet fuel to zero from 4 per litre and diesel to 5 per litre from 11 per litre. All the changes will come into effect from today, August 3.

Also, the government has levied fresh taxes on the export of petrol, diesel and Aviation Turbine Fuel (ATF) and on domestic sale of crude oil. This is in pursuance of runaway global prices. The plan is to review the taxation levels every fortnight.

Tuesday’s revision takes the cess on the production of each tonne of petroleum crude to Rs 17,750 from Rs 17,000 which was imposed from July 20.
The levy is aimed at checking windfall profits for domestic oil producers who sell their output at international parity prices even to domestic refineries. Between July 1 and July 19, it was Rs 23,250 a tonne.