Windfall Tax: The central government has made a big cut in the windfall tax on crude oil. At the same time, the export duty on diesel has been increased.
New Delhi: A major reduction has been made by the central government regarding windfall tax on crude oil. The government has reduced the windfall tax on crude oil to Rs 3,500 per tonne. Earlier it was Rs 4400 per ton. Accordingly, the windfall tax has been reduced by Rs 900 per tonne.
The Central Government has increased the export duty of diesel by Rs 0.50 per litre. On the other hand, petrol and aviation turbine fuel (ATF) i.e. jet fuel have been exempted from this. This increased rate will be applicable from March 21.
Just some time ago i.e. on March 4, there was a slight increase in windfall tax by the central government. The government had increased the windfall tax on crude oil from Rs 4350 per tonne to Rs 4400 per tonne. However, there was an increase of Rs 0.5 per liter on the export of diesel. Whereas ATF was removed from export duty.
For the first time, India made profit from windfall profit tax on July 1, 2022 by imposing an export duty of Rs 6 per liter on petrol and ATF and Rs 13 per liter on diesel. A windfall tax of Rs 23,250 per tonne was levied on domestic crude oil production.
This type of tax depends on the price of crude oil in the international market. The tax will be according to the situation there. The Central Government recently said in a reply in the Parliament that Special Additional Excise Duty is estimated to be recovered from 25 thousand crore windfall tax during this financial year.