The impact of the windfall tax on exports of gasoline, diesel and aviation fuel (ATF) will be examined. This measure has been taken by the government because crude oil prices have stabilized globally. The government decided to impose an export tax on gasoline, diesel and aviation turbine fuel (ATF) in July 2022, after some oil refineries made record profits from exporting the fuel at the expense of domestic supplies, reported PTI.
The windfall tax was reduced to zero
According to the news, sources said that the Ministry of Finance is going to review the windfall tax (Income Tax) and the tax collected from it. In September, the government had reduced the windfall tax per ton of crude oil produced in the country to zero. This tax is applied in the form of the Special Additional Consumption Tax (SAED) and is notified every fifteen days based on the biweekly average of oil prices.
Windfall tax in August was Rs 1,850 per ton
It was last reviewed by the government on August 31. The windfall tax on crude oil was then fixed at Rs 1,850 per tonne. The DEA on exports of diesel, gasoline and aviation fuel or ATF has remained unchanged at zero since September 18. India imposed the windfall tax for the first time on July 1, 2022. With this, it joined the list of countries that tax the windfall profits of energy companies.
Sources also said that the Ministry of Petroleum and Natural Gas has written a letter to the Ministry of Finance to consider bringing natural gas under the ambit of Goods and Services Tax (GST). He said the GST Council, headed by Union Finance Minister Nirmala Sitharaman, should consider this proposal and take a decision.
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