The central government on Monday, slashed the windfall profit tax on domestically produced crude oil. As per the official updates, the government has reduced this windfall tax to Rs 4,100 per tonne from the previous Rs 6,400 per tonne.
According to the official notification issued by the Central Board of Indirect Taxes and Customs, despite this cut in windfall profit tax, the export duty exemption for petrol, diesel and aviation turbine fuel continues. These revised rates, as per the directives, will be effective today, May 2, 2023.
The slashing of windfall profit tax on domestically produced crude oil comes in the light of government re-imposing the windfall tax in the last notification. Back then, the government revised it from zero to Rs 6,400 per tonne and scrapped the export duty on diesel.
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For the unversed, the windfall profit tax is reviewed every fortnight based on several factors, including average oil prices in last two weeks from the time renewal.
Based on these factors, the government imposes/revises the windfall tax and releases notifications that are then applicable on relevant stakeholders.
