Windfall Tax Reduced: Today a boom is being seen in the shares of oil and gas sector and its related companies in the stock market. There is a big reason behind this that today the government has announced reduction in windfall tax on crude oil, diesel and aviation fuel. Due to this, the shares of oil and gas companies have returned fast. The issued rates of windfall tax have come into effect from January 17, 2023 i.e. from today.
What is the government’s decision on crude oil
The central government has reduced the windfall tax on crude oil produced in the domestic market by Rs 200 per tonne. Windfall tax on crude oil has been reduced from Rs 2100 per tonne to Rs 1900 per tonne. In this way, it has been directly reduced by Rs 200 per tonne.
How much windfall tax has been reduced on aviation turbine fuel
It has been announced to reduce the rate of windfall tax on Aviation Turbine Fuel (ATF) from Rs 4.5 per liter to Rs 3.5 per litre. The windfall tax on ATF or jet fuel has come down by Re 1 per litre.
Windfall tax on diesel also reduced
By issuing a notification, the central government has reduced the windfall tax on diesel from Rs 6.5 per liter to Rs 1.5 per litre. With this, the windfall tax on diesel has now come down to Rs 5 per liter from Rs 6.5 per liter earlier.
What is the news about the tax on petrol
The government has not announced any windfall tax on petrol and earlier no tax was applicable on its export. There has been no change in the export duty on Petrol.
Earlier in the beginning of January, windfall tax was increased
In early January, the windfall tax on crude oil was increased from Rs 1700 per tonne to Rs 2100 per tonne. At the same time, the export duty on diesel was increased from Rs 5 to Rs 6.50. Apart from this, the export duty on aviation turbine fuel was increased from Rs 1.5 per liter to Rs 4.5 per litre.
What is windfall tax
Windfall tax is levied to reduce the profits made due to increase in the price of crude oil. It was implemented by the central government for the first time in July last year, with the aim that the government could increase the revenue by imposing some tax on the profit earned by the oil companies on the export of crude oil. Windfall tax is reviewed every 15 days by the Central Board of Indirect Taxes and Customs.
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