The Centre has raised the windfall tax on the production of petroleum crude to Rs 4400 per tonne from Rs 4350 effective March 4. It has, however, cut the tax on the export of aviation turbine fuel to zero from Rs 1.5 per litre, and reduced it to Rs 0.5 per litre from Rs 2.5 on the export of diesel.
A windfall tax is a levy on companies and sectors that witness sudden profit. This is primarily directed at companies in a certain industry that sees the most windfall economically.