New Delhi: The government has cut the windfall tax on the export of diesel and scrapped the levy on jet fuel (ATF) shipments, but raised the tax on domestically produced crude oil.
The tax on the export of diesel was slashed to Rs 5 per litre from Rs 11, according to an official notification issued on Wednesday.. Export of petrol will continue to attract niltax. The tax on domestically produced crude oil was increased to Rs17,750 per tonne from Rs17,000, a move that will hit producers like ONGC and Vedanta Ltd. The cut in taxes - the second in as many weeks - came as India's trade gap swelled to a record.
The measures come hours after data showed India's trade deficit ballooned to a record high in July, as hiked commodity prices and a weak rupee inflated the country's import bill.
The gap between exports and imports widened to USD 31.02 billion in July from USD 26.18 billion in June. This, becasue of exports falling and elevated commodity prices together with a weak rupee, is inflating the import bill. Imports jumped 43.59 percent in July from the year ago month, while exports dropped 0.76 percent. India first imposed windfall taxes on July 1, joining a growing number of nations that taxes super normal profits of energy companies.
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