Windfall TaxImage Credit source: File Photo
India reduced the windfall tax on domestically produced crude oil from Rs 6,400 per tonne to Rs 4,100 per tonne. At the same time, exemption in export duty on petrol, diesel and aviation turbine fuel will continue. According to the notification issued by the Central Board of Indirect Taxes and Customs, the fee has become effective from May 2 i.e. today. Let us tell you that in the last one month, three changes have been seen in the windfall tax. In fact, the windfall tax is changed every 15 days.
Tax review is done in 15 days
On 4 April, India reduced the windfall tax on petroleum crude to nil from Rs 3,500 per tonne earlier. Thereafter, on April 19, the government abolished the windfall tax on domestically produced oil from zero to Rs 6,400 per tonne and export duty on diesel. This change was seen because there has been a softening in the price of crude oil. The tax rate is reviewed every 15 days based on the average oil prices in the last two weeks. India had imposed windfall tax for the first time on July 1 last year. After which India again joined those countries which tax the extraordinary profits of petroleum companies.
affects common people
Its effect is not visible on the common people at the domestic level. In fact, this effect is seen on those companies who buy crude oil at a low price and earn huge profits by refining it and selling it to other countries at a higher price. On this profit, the government earns by imposing windfall tax. This tax is also imposed when the price of crude oil is high in the international market and the government wants companies to reduce the export of petroleum products. So that domestic needs can be met as much as possible.