Central government The government has drastically reduced the windfall tax on crude oil to Rs 3,250 per tonne. It was Rs 5,200 per tonne last fortnight. The direct benefit of the reduction in windfall tax goes to companies producing crude oil domestically such as ONGC and Oil India. According to the notification issued by the government, the new tax rate has come into effect from June 15. Windfall tax on diesel, petrol and aviation fuel (ATF) has been kept zero.
Tax is reviewed in 15 days
The windfall tax is reviewed by the government every 15 days. The windfall tax on crude oil has been reduced several times in recent months. On June 1, it was reduced from Rs 5,700 per tonne to Rs 5,200 per tonne. At the same time, on May 16, the government reduced the windfall tax on crude oil from Rs 8,400 to Rs 5,700 per tonne. Earlier on May 1, it was reduced from Rs 9,600 to Rs 8,400 per tonne.
Windfall tax started from 2022
The direct benefit of reducing the windfall tax on crude oil goes to domestic petroleum producing companies like ONGC and Oil India. Windfall tax is imposed on the unexpected profits made by companies due to rising crude oil prices. It was introduced from July 2022.
Input: IANS
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