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Centre Cuts Windfall Tax on Crude Oil to Rs 4,350

Picture Source: Internet

On Thursday, the Centre amended the windfall profit tax on nationally twisted crude oil from Rs 5,050 per ton to Rs 4,350 per ton. The supplementary excise duty on ATF was also cut to Rs 1.5 per litre from Rs 6 per litre.

Supplementary, the government also decreased the tax on the export of diesel to Rs 2.5 per litre from Rs 7.5 per litre. Petrol endures zero excise duty. The new rates will derive into effect on February 16.

The windfall tax was first obligatory in India first mandatory windfall profit taxes on July 1, 2022, and is predictable to endure due to high prices. It is likely to give around Rs 25,000 crore in the existing fiscal ending March 31, top government bureaucrats said earlier this month.

“As of now, crude prices are once more on the rise. So, for time creature windfall tax will continue,” CBIC Chairman Vivek Johri said.

Distinctly, Revenue Secretary Sanjay Malhotra supposed the budget has a predictable collection from windfall tax at Rs 25,000 crore in the existing fiscal.

As the geopolitical condition continues to be volatile, Johri said, it would be “difficult to envisage how long the windfall taxes will endure”.

The Centre imposes a windfall tax on profits made by oil manufacturers on any price they get overhead at the rate of $75 per barrel.

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