The Centre on Friday reduced the windfall tax on domestically-produced crude oil and aviation fuel, ANI reported. On July 19, the Union finance ministry had levied the charges.
A windfall tax is a one-time fee imposed on a company whose profits have surged extraordinarily due to favourable market conditions.
According to a government notification, the tax on domestically-produced crude oil was reduced to Rs 1,700 per tonne from Rs 4,900 per tonne.
The tax on aviation fuel was cut down to Rs 1.5 per litre from Rs 5 per litre. The revised tax rates are effective from Friday.
The changes will help state-run Oil and Natural Gas Corporation and Vedanta Limited as well as top fuel exporter Reliance Industries.
The reduction in tax rate comes amid a 14% decline in global crude oil prices since November, reported PTI.
On Thursday, the price of Brent crude stood at $81.21 (Rs 6,600.12) after falling by 1.8%, according to Reuters. Brent is a global price benchmark for crude oils from the Atlantic basin.
Buy an annual Scroll Membership to support independent journalism and get special benefits.
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!