India has made adjustments to its tax policy for the second time in less than two weeks. The South Asian country has raised the windfall tax on locally produced crude from INR 17,000 to INR 17,750 a tonne, which will hurt producers like Vedanta, Reliance and ONGC. However, it has cut the fuel export tax from INR 4/ liter to zero and diesel export tax from INR 11/liter to INR 5/liter. The authorities imposed the tax after domestic firms were making huge profits from jumps in global oil prices. India imposed the windfall tax on oil exports in early July to increase its tax revenue. Following that, it cut the windfall tax on July 20, offering some relief to local oil exporters. The taxation policy is expected to constantly shift in the near future as the Indian authorities mentioned that they will review the exports and imports of these commodities every 2 weeks, adjusting its policy along the way.
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