The central government on Monday slashed the windfall profit tax on the domestically produced crude oil. As per updates, the Union Ministry of Finance revised this windfall tax on a bunch of commodities, ones that are under review every fortnight.
Windfall Tax: The reduction in this amount on domestically produced crude oil also comes in the backdrop of a reduction in global crude oil prices
The central government on Monday slashed the windfall profit tax on the domestically produced crude oil. As per updates, the Union Ministry of Finance revised this windfall tax on a bunch of commodities, ones that are under review every fortnight.
According to the official notification, the export duty on diesel, instead of being reduced like windfall tax, has been increased to Re 1 per litre. Previously, this amount stood at Rs 0.50 per litre. However, the government has kept both petrol and Aviation Turbine Fuel (ATF) exempted from the export levy.
In addition to this, it must be noted that over the past fortnight, the windfall tax for locally produced crude stood at Rs 4,400 per tonne. Hence, the changes made to this windfall profit tax, this fortnight, are significant.
The revised rate(s) of windfall tax would come into effect from March 21. As per media reports, the reduction in this amount on domestically produced crude oil also comes in the backdrop of a reduction in global crude oil prices.
Before this, on March 4, the levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) was marginally hiked to Rs 4,400 per tonne from Rs 4,350 per tonne. Please note that the windfall profit tax is revised every fortnight only based on the international crude oil prices.