The Government hiked the windfall taxes which will kick in from August 19, says the finance ministry.
Government has revised the windfall profit tax on the Aviation Turbine Fuel (ATF), export at Rs. 7 per litre on diesel and brought back a tax on jet fuel exports but slashed the levy on domestically produced crude oil in line with softening rates.
The government raised the windfall profit tax on the export of diesel to ₹7 per litre from ₹5 a litre and brought a ₹2 a litre tax on jet fuel (ATF) exports.
Finance ministry notification said that the new windfall taxes will kick start from August 19, reflecting the latest review of such taxes that were first imposed in July in view of global crude oil prices resulting in super-normal profits for petroleum producers.
Increased export taxes
The tax on exports was increased when cracks or margins increased, but the tax on domestic oil production was decreased as global oil prices fell to their lowest level in six months.
On 1 July, export duties of ₹6 per litre ($12 per barrel) were levied on petrol and ATF and a ₹13 a litre tax on the export of diesel ($26 a barrel). A ₹23,250 per tonne windfall profit tax on domestic crude production ($40 per barrel) was also levied.
After that, on July 20, the first fortnightly review, the export tax on petrol, which was previously Rs.6 per litre, was eliminated. The export tax on diesel and jet fuel was also reduced by Rs.2 per litre, to Rs.11 and Rs.4, respectively. Additionally, the tax on crude that is produced domestically was lowered to Rs.17,000 per tonne.
At the third fortnightly review, the taxes on fuel exports has been raised but that on domestically produced crude oil has been cut.
Taxes were cut earlier in August as the nation's trade deficit widened to a record high last month as high commodity prices and a depreciating rupee increased the import bill.
Imports surged 43.59% in July from the year-ago month, while exports dropped 0.76%.And since, global oil prices have slid to below $95 per barrel but cracks on diesel and jet fuel rose.
According to reports, India is working on a principle to leave certain healthy margins while taxing earnings above that from both crude oil producers and refiners.
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 "Government hikes windfall profit tax on diesel export, ATF and cuts tax on domestic crude oil")
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