Windfall Tax News

The Petroleum Secretary also said that government is mulling removal of windfall tax, stating that India's oil ministry is in talks with the finance ministry regarding the same.

Upstream oil exploration and production companies ONGC and Oil India Ltd stand to gain as they will have to pay a lower tax on their crude.

The tax helps the government to raise more resources to subsidise the prices of LPG and CNG for consumers.

India had first imposed windfall profit taxes on July 1, 2022, joining a growing number of nations that tax the supernormal profits of energy companies.

Government revises windfall tax on these commodities on a fortnightly basis.

Alongside, the government cut the tax on the export of diesel to Rs 0.50 per litre from Re 1.

The government raised the tax on the export of diesel to Re 1 per litre from Rs 0.50.

The order is dated December 15. The new tax rates are effective from today, December 16. India first imposed windfall profit taxes on July 1.

At the third fortnightly review, the government has increased the windfall profit tax on the export of diesel to Rs 7 per litre from Rs 5 a litre and brought a Rs 2 a litre tax on ATF exports.

Windfall tax records will be reviewed every fortnight India is facing difficulty in getting crude oil from abroad at an affordable price Rs 23,250 per tonne tax was levied on crude oil produced domestically

The tax, which may come in form of a cess, will kick in the moment oil prices cross USD 70 per barrel, sources privy to the development said.