Windfall tax change again: Diesel and ATF tax reduced, crude increased

The government announced a change in its policy of taxing excess profits every 15 days from companies that profit from high refining margins due to sharp volatility in crude oil and especially high prices. Today the government has changed this windfall tax again. The government has amended the windfall tax imposed on the export of […]
 


Windfall tax change again: Diesel and ATF tax reduced, crude increased

The government announced a change in its policy of taxing excess profits every 15 days from companies that profit from high refining margins due to sharp volatility in crude oil and especially high prices. Today the government has changed this windfall tax again.

The government has amended the windfall tax imposed on the export of petroleum products with effect from July 1 to curb the prices of petroleum products in the domestic market. The government on Tuesday issued a notification regarding amendment in the unexpected tax on crude oil, diesel and jet fuel (ATF).

Now the government has increased the petroleum crude tax from Rs 17,000 per tonne to Rs 17,750 per tonne. Along with this, the tax on jet fuel has been abolished. Earlier, jet fuel was taxed at Rs 4 per liter. Similarly, excise duty on diesel has been reduced from Rs 11 per liter to Rs 5 per litre.

Windfall tax came into effect from July 1

The government imposed unexpected tax on export of petroleum products on July 1 to control the prices of petroleum products in the domestic market. Per liter on export of petrol and ATF Rs. A windfall tax of 6 was levied, while a duty of Rs. 13 was taxed. In addition, an excise duty of Rs 23,230 per tonne was also imposed on domestic crude.

In view of the fall in international crude oil prices, the government had also amended the windfall tax on July 21. Unexpected tax on export of diesel and jet fuel up to Rs. 2, while the export of petrol was reduced by Rs. The levy of 6 was abolished completely. Tax on domestic crude exports has been reduced by 27 per cent to Rs 17,000 per tonne.

Who benefits from reducing windfall tax?

Reliance Industries, Oil India and Vedanta Ltd will benefit from unexpected tax cuts. In addition, Russia’s Rosneft’s Naira Energy, which operates a 20 million tonne annual refinery in Gujarat, will also benefit.

According to market experts, Reliance Industries will benefit the most from this tax cut. The company has two oil refineries in Gujarat, out of which one refinery is used solely for exports.