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The finance ministry will review the effectiveness of windfall tax on export of petrol, diesel and aviation turbine fuel (ATF).
India will be the first to implement a windfall profit tax on July 1, 2022, joining a host of countries that tax windfall profits of energy companies.
Sources said the finance ministry will review the utility of windfall tax on export of petrol, diesel and aviation turbine fuel (ATF) as global crude oil prices have stabilised.
Abnormal profits on fuel exports by some oil refiners at the expense of domestic supplies have prompted the government to introduce export taxes on petrol, diesel and ATF in July 2022.
Sources said that the finance ministry is going to review the windfall tax and the tax is being mobilized out of it.
Sources said that the Ministry of Petroleum and Natural Gas has already written a letter to the Finance Ministry in this regard.
The government had reduced the windfall tax on domestically produced crude oil to ‘nil’ per tonne in September.
This tax is levied in the form of Special Additional Excise Duty (SAED) and is notified fortnightly based on the average of oil prices in the fortnight.
The last such revision was effective from August 31 when the windfall tax on crude petroleum was fixed at Rs 1,850 per tonne.
SAED on export of diesel, petrol and jet fuel or ATF has been maintained at ‘zero’ since September 18.
India will be the first to implement a windfall profit tax on July 1, 2022, joining a host of countries that tax windfall profits of energy companies.
Sources also said that the Ministry of Petroleum and Natural Gas has written to the Finance Ministry to consider bringing natural gas under the purview of Goods and Services Tax (GST).
Sources added that the GST Council, headed by the Union Finance Minister, has to consider the proposal and take a decision on it.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed. PTI)
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