Economy Focus: A top finance ministry official told that the Indian government would scrap the windfall tax on oil producers

India has cut taxes on fuel exports for the second time in less than two weeks and raised an unexpected tax on domestically produced crude oil, the government said in an announcement on Tuesday.India has reduced export taxes on jet fuel to zero from Rs 4 per liter and diesel to Rs 5 per liter from Rs 11 per litre, a finance ministry announcement said.The changes will be effective from Wednesday.
India, the world’s third-largest oil importer, also raised a tax on domestically produced crude oil to 17,750 rupees ($226.14) a tonne from 17,000 rupees a tonne on Tuesday, a government announcement said.India imposed a surprise tax on oil producers on July 1, along with export charges for gasoline, diesel and jet fuel.But on July 20, it announced it would cut a windfall tax on oil producers and refiners’ fees and exempt gasoline entirely from export duties.A top finance ministry official told last month that the Indian government would scrap the windfall tax on oil producers and refiners only if global oil prices fell by as much as $40 a barrel from current levels.
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