The government has cut windfall tax on crude oil production to nil from 3,500 rupees ($42.56) per tonne effective from Tuesday, according to a government notification.
The windfall tax on diesel has been slashed to Rs 0.5 per litre from Re 1 per litre earlier. There is no windfall tax on petroleum and ATF.
Windfall tax is levied by governments when an industry unexpectedly earns large profits. The tax was levied in July last year as high energy prices led to soaring profits for oil producers.
Since then, windfall taxes for crude oil have declined from Rs 23,250 per tonne in July 2022 to Rs 3,500 per tonne as of 21 March 2023, mimicking Brent Crude Oil prices.
The decision comes at a time when the OPEC+ decided to cut production. The move led to Brent rising by almost 6 per cent to USD 84.58 per barrel on Monday.
For the Official Notification No. 16/2023-Central Excise and Notification No. 17/2023-Central Excise both dated April 03, 2023
Source from: https://www.moneycontrol.com/news/business/economy/govt-cuts-all-windfall-tax-on-crude-10359711.html