The union government has lowered the windfall tax on locally produced crude oil sales to $13,000 per tonne.
The sale of Indian-produced crude oil has been subject to an extra levy of $17,750 per tonne for the past two weeks.
The Center has also reduced the cess on the export of aviation turbine fuel (ATF) to $2 per litre. ATF shipments have not been subject to the cess for the last two weeks.
The special additional excise duty on diesel export has been raised from $5 to $6 per litre, which would be $7 per litre with a cess.
Without the imposition of the windfall tax, the export of gasoline would continue. The new rates go into effect on August 19.
On July 1, the Center imposed export taxes of $6 per litre on gasoline and ATF and $13 per litre on diesel. On the sale of domestic crude, there was a windfall tax of 23,250 per tonne.
The first review of the taxes took place on July 20. At that time, the 6-cent-per-litre duty on gasoline exports were eliminated, and the 11- and 4-cent-per-litre taxes on diesel and aviation turbine fuel (ATF) were cut.
On July 20, the tax on domestically produced crude was lowered to 17,000 per tonne.
Following the tax’s implementation on July 1, Revenue Secretary Tarun Bajaj had stated that it would be reassessed every 15 days, considering, among other things, the foreign exchange rate and world crude prices.
Fears of a recession have recently caused crude prices to decline and drop to 6-month low levels.