New Delhi: In view of the softening of crude oil prices in the global market, the central government has withdrawn the hefty tax imposed on exports three weeks ago. The government has also cut taxes on diesel and air fuel, while the entire tax on petrol has been abolished. In fact, the tax has also been charged with preventing the rise in the retail price of petrol and diesel in the domestic market due to the steeply rising prices of crude oil in the global market. The objective was to ensure that the companies should consume the refined fuel here in the domestic market instead of exporting it so that the supply would be better and the pressure on prices could be reduced. However, oil companies had been opposing this additional tax ever since it came into force.
According to a notification issued by the government, in addition to Rs 13 per litre levied on diesel and aviation fuel, Rs 2 has also been deducted from the tax. That is, now companies may have to pay an additional tax of 11 rupees for the export of diesel and air fuel. At the same time, the tax of Rs 6 per litre on the export of petrol has been completely abolished.
Major tax cuts on domestic crude products: The government had also ordered a hefty tax on crude oil exports produced in India, which has now been cut drastically. The government has also reduced the tax on exports of domestic crude by 27 per cent to 17,000 rupees per tonne. The tax was imposed to prevent domestic crude from exporting to improve fuel supply in the Indian market when its prices are seen rising sharply in the global market.
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