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India Cuts Windfall Taxes on Diesel, Aviation Fuel and Local Oil

Oil barrels in Faridabad, India.

Oil barrels in Faridabad, India.

Photographer: Anindito Mukherjee/Bloomberg

India slashed windfall taxes on locally produced crude oil, and for exported diesel and aviation turbine fuel, in line with the decline in international prices.

The tax on crude oil produced from domestic fields, introduced from July 1, was cut from Sunday by about 24% to 8,000 rupees ($98.3) a ton, according to a government notification published late Oct. 1. The government also removed a 5-rupee-per-liter levy on the export of aviation fuel and halved the tariff on diesel to 5 rupees a liter.