Windfall tax on petroleum crude to increased to 9600 metric ton effective from today

Windfall Tax: On Monday, April 15, the Government of India has increased the windfall tax on petroleum crude in the country. It has been increased from Rs 6800 per tonne to Rs 9600 per metric tonne. These have come into effect today from April 16 and this windfall tax is for domestically produced crude oil i.e. crude oil produced in the country. However, the government has imposed zero tax on diesel and aviation turbine fuel, that is, there will be no tax on them.

Windfall tax was increased in the last review meeting also

Due to this, in the review meeting held on April 4, 2024, the windfall tax on petroleum crude was also increased and it was increased from Rs 4900 metric ton to Rs 6800 metric ton.

Movement is visible in the price of crude oil

The ongoing tension between Iran and Israel is currently affecting the prices of crude oil in the international market. Today, Brent crude is hovering around the rate of $91 per barrel and an upward trend is being seen in it. Global instability has a negative impact on the price of crude oil and its prices rise as is being seen at present.

Windfall tax was not levied earlier

The Government of India reviews the rates of windfall tax every fortnight i.e. every 15 days. Keep in mind that the Government of India had imposed windfall tax on crude oil for the first time in July 2022 and before this this tax was not imposed. In fact, the government found that some private refineries were exporting diesel, petrol and ATF instead of selling them in the domestic market, due to which they were getting higher margins. After this, the government implemented a type of tax on exports in the form of windfall tax, which is levied in the form of special additional excise duty. Every fortnight, a decision is taken to increase or decrease the windfall tax keeping in mind the international circumstances.

read this also

Reserve Bank took action on this bank, account holders will be able to withdraw only this much amount