Windfall tax cut cheer, most products now have zero duty

Petroleum products ex-diesel, now have no windfall tax. In the fortnight update, Govt has in Tuesday announced a sharp cut of Rs 3,500 per tonne special additional excise duty on crude while diesel Duty is cut to less than a rupee per litre. Petrol and crude continue to have zero duty.

The sharp cut in crude duty came on the back of recent fall that had taken crude prices to lowest levels in more than a year. It though has seen a sharp rise in last two days following the surprise announcement by OPEC+ on production cut. The brent crude contract is again at a 1-month high of $85 per barrel.

The crude now carries zero special additional excise duty for the first time since the rule was brought into effect in July 2022. It is reduced to zero from Rs 3,500 per tonne. Diesel duty has been cut to Rs 0.50 from Rs 1 per litre.