Windfall Tax On Crude Oil: Know What Is The Update

Windfall Tax On Crude Oil: The government said this about oil exports and windfall tax, know what is the update.

The government has said that it will review the recently introduced windfall tax on crude oil and fuel exports based on foreign exchange rates and oil prices in the international market.

But no limit has been fixed for its withdrawal.

Revenue Secretary Tarun Bajaj said that at present, there is talk of oil prices coming down to the level of $ 40 per barrel to withdraw the windfall tax according to the international market, which is not realistic.

The premise behind this was that if crude oil prices fell, the new taxes would be rolled back.

Let us inform you that on July 1, the government imposed a tax of Rs 6 per liter on the export of petrol, diesel, and ATF and Rs 13 per liter on the export duty of diesel.

In addition, a windfall tax of Rs 23,250 per tonne was imposed on domestically produced crude.

This will be monitored.

Revenue secretary Tarun Bajaj said, “We will monitor it every two weeks based on foreign exchange rates and international prices.”

“We will continue to review the position of rupee against the dollar, international prices of diesel and crude and domestic cost of crude oil,” he added.

Explain that India is 85 percent dependent on imports to meet its crude oil requirements. The weaker the rupee, the more expensive the imports will become.

Central Board of Excise and Customs (CBIC) chairman Vivek Johri also said that no limit has been fixed for the review of a windfall tax.

On the possibility of oil prices in the international market reaching the limit of $ 40 per barrel, he said that there is no such expectation as of now. It’s a fast-changing thing, so we’ll have to wait.”

Why did the government take this step?

The purpose of these restrictions imposed on the export of oil is to maintain a smooth supply at petrol pumps.

Finance Minister Nirmala Sitharaman said last week that fuel should not be exported at the cost of domestic supplies and the “unprecedented gains” from exports by some oil companies prompted the government to levy export tax on petrol, diesel, and ATF.

Let us inform you that a few days ago, in states like Madhya Pradesh, Rajasthan, and Gujarat, oil was not being supplied at petrol pumps because private refiners were exporting oil instead of selling it in the local market.