Govt removes windfall tax on petroleum crude
New Delhi: The Union government has reduced the windfall tax on petroleum crude to zero from Rs 1,850 per metric ton, effective September 18, according to a government notification issued on September 17.
The windfall tax, which is reviewed every two weeks, was cut following a notable drop in crude oil prices. In the previous revision on August 30, the government had reduced the tax on domestically produced crude oil by 11.9%, bringing it down to Rs 1,850 per ton from Rs 2,100 per ton, effective August 31, reported Moneycontrol, citing the notification.
This marks the second time the windfall tax has been reduced to zero since its implementation.
Global Brent crude prices have dropped below $75 per barrel, down from over $92 per barrel in April.
On September 12, Petroleum Secretary Pankaj Jain stated that the Oil Ministry had been discussing the windfall tax with the Finance Ministry, with the Department of Revenue responsible for making the final decision.
Jain also noted that while oil prices had been falling over the previous 7-10 days, it is essential to observe whether this trend continues, as it may not be wise to make decisions based on short-term price movements.
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