Windfall Tax: The central government has once again given a blow to the oil companies after a gap of two months. The government has announced that Windfall Tax will be imposed once again on Petroleum Crude after a gap of 2 months.
According to the notification issued on July 14, the windfall tax on domestic crude production has been increased to Rs 1600 per tonne. Earlier there was zero tax on it. The new rates have come into effect from July 15, 2023 i.e. Saturday. At the same time, windfall tax on petrol, diesel and aviation turbine fuel (ATF) has been kept zero.
Windfall tax was made zero in May
Earlier, on May 15, 2023, the central government made a major cut in the windfall tax on petroleum crude, reducing it from Rs 4,100 per tonne to zero. At the same time, earlier on May 1, the government had cut it by Rs 2,200 per tonne. At the same time, on June 17, the government had decided that it would not impose any windfall tax on petroleum crude, petrol, diesel and ATF, but within a month, the government has made a big change in its decision. Currently, the windfall tax on petrol, diesel and aviation turbine fuel is zero.
When was the windfall tax first imposed?
It is worth mentioning that for the first time in India, Windfall Tax was imposed by the Central Government on Crude Oil Products on July 2022. In this, products like gasoline, diesel and aviation turbine fuel were also included. The government imposes tax on the profit on selling these products outside the country. Actually private oil companies were selling products in the international market at higher profits. In such a situation, instead of the domestic market, she was preferring to sell the products outside. In such a situation, the government has started imposing windfall tax on petroleum crude and other products only to reduce this profit margin.
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