Govt cuts windfall tax on fuel export, raises levy on domestic crude oil

Centre lowers export tax on diesel and ATF; new rates to be effective from Aug 3

The government on late Tuesday increased the windfall tax on domestically produced crude to Rs 17,750 a tonne from Rs 17,000 a tonne earlier, a move that will hit producers like ONGC and Vedanta Ltd. Also, government lowered the export tax on diesel and aviation turbine fuel in line with softening international petroleum product prices. This is the second round of the revision of the newly-introduced windfall tax. The new changes will come to effect from August 3. 

The Central Board of Excise and Customs (CBIC), in its notification, has cut the levy on diesel to Rs 5 per litre