Centre decreases windfall cess on crude oil to 3500 rupees per tonne
The windfall tax on locally produced crude oil was decreased by the Union Ministry of Finance on Monday to 3,500 rupees per tonne, according to PTI. The windfall tax for the past two weeks has been 4,400 rupees per tonne. Diesel export taxes have increased from 0.50 to 1 Rupee per litre. Each two weeks, taxes are evaluated. The updated tax will take effect on March 21.
Crude oil is refined and transformed into fuels like gasoline, diesel, and ATF, after it is extracted from the earth and the ocean floor.
Since crude oil prices skyrocketed in the wake of the Russia-Ukraine war, bringing in substantial gains for oil producers, the windfall profit tax was enacted last year. Every two weeks, the government adjusts the tax rates to calibrate the tax mop-up.
Officials claim that only a portion of the additional profits that businesses make on international markets during a time of high prices are absorbed by the tax rate.
The levy on the export of aircraft turbine fuel had been eliminated by the Center during the previous revision.
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The recent drop in the price of crude oil around the world is what led to the reduction in the windfall tax on crude oil. The Intercontinental Exchange’s May Brent contract is trading at 72.67 dollars per barrel, down 0.41 percent from the previous close. West Texas Intermediate’s April contract on the NYMEX decreased 0.42 percent to 66.46 per barrel.