Fuel Exporters' Stocks Decline On Hike In Windfall Tax
Shares of RIL, MRPL, Chennai Petroleum, ONGC fell as the union government almost doubled windfall tax on exports of diesel.
Shares of fuel and oil explorers such as Reliance Industries Ltd., Mangalore Refinery Petrochemicals Ltd., Chennai Petroleum Corp. and Oil & Natural Gas Corp. fell as the union government almost doubled windfall tax on exports of diesel.
The levies for aviation turbine fuel has been hiked by over four times. The new tax rates will be effective Sept. 1, according to a gazette notification on Wednesday.
Windfall tax on diesel exports was increased to Rs 13.5 a litre from Rs 7 a litre earlier.
The levy on ATF shipments was hiked to Rs 7 from Rs 2 earlier.
Tax on crude oil produced in domestic fields was also increased to Rs 13,300 per tonne from Rs 13,000 per tonne.
The recent hike is part of the fortnightly revision in windfall taxes. India introduced the levy in June this year.
