Business

Reduced profit tax on domestic crude oil

NEW DELHI: The government on Friday cut back profit tax for domestically produced crude oil in line with the reduced international exchange rate, and to reduce the export tax on diesel and jet fuel (ATF).
At the fifth biweekly review, the government reduced the tax on domestically produced crude oil to Rs 10,500 per tonne from Rs 13,300 per tonne.
Diesel export tax reduced from Rs 13.5 to Rs 10 per liter. In addition, the aviation turbine fuel (ATF) export tax has been cut to Rs 5 per liter from Rs 9 effective September 17, according to an announcement by the Ministry of Finance issued on Friday evening. .
International oil prices fell to a six-month low this month, leading to a decline profits Tax.
The basket of crude oil purchased by India in September averaged $92.67 per barrel compared with $97.40 in the previous month.
While private refiners Reliance Industries Ltd and Nayara Energy based in Rosneft are the main exporters of fuels such as diesel and ATF, the domestic crude oil income tax is aimed at producers. production such as Petroleum Natural Corporation (ONGC) and Vedanta Ltd.
India first imposed a profit tax on July 1, joining a growing number of countries that tax the supernormal profits of energy companies. But international oil prices have cooled since then, eroding the profit margins of both producers and refiners.
An export tax of Rs 6 per liter ($12 per barrel) is levied on gasoline and aviation turbine fuel and Rs 13 per liter ($26 per barrel) on diesel.
Profit tax collected from Rs 23,250/ton ($40/barrel) on domestic crude oil production is also levied.
The tariffs were partially adjusted in the previous four tranches on July 20, August 2, August 19 and September 1, and were eliminated on gasoline.

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