The government has changed the windfall tax for the second time in March. Earlier, on March 4, the government had reduced the export duty on diesel to Rs 0.50 per liter and that on locally produced crude oil to Rs 4,000 per tonne.
Image Credit source: File Photo
Windfall Tax: The government has changed the windfall tax for the second time in a row in the month of March. Where it was increased on March 4, now there is a reduction. By the way, this tax is imposed on those companies who refine domestic crude oil and export it abroad and earn big money. Which benefits the government. The common people do not see the effect of reducing or increasing this tax. Let us also tell you that how the government imposes windfall tax and how does the government earn from it? Let us also tell you…
Windfall tax cut?
The central government on Monday late night reduced the windfall tax on domestic crude oil from Rs 4,400 per tonne to Rs 3,500 per tonne. Meanwhile, the government increased the export duty on diesel from Rs 0.50 to Rs 1 per litre. This change from the government has come into effect from 21 March i.e. today. By the way, the government has changed the windfall tax for the second time in March. Earlier, on March 4, the government had reduced the export duty on diesel to Rs 0.50 per liter and that on locally produced crude oil to Rs 4,000 per tonne.
Why is windfall tax levied?
The windfall tax was first imposed on July 1 last year after a surge in oil prices due to the Russia-Ukraine war. The government had mandated that by March 31 of the current financial year, companies should sell 50 percent of their gasoline exports and 30 percent of their diesel exports domestically. The tax was put into effect because private refiners Reliance Industries and Nayara Energy, which are major buyers of subsidized Russian supplies, were making huge profits by aggressively expanding fuel exports rather than domestic sales.
Read also: UBS exited India 7 years ago, will enter again on the pretext of Credit Suisse!
how much export duty on whom
The government imposed an export duty of Rs 6 per liter ($12 per barrel) each on petrol and ATF, Rs 13 per liter ($26 per barrel) on diesel, and Rs 23,250 per tonne ($40 per barrel) on domestic crude oil Is. Windfall tax on petrol was abolished in the first review of rates. Revenue Secretary Sanjay Malhotra had said in a media report on February 4 that the government estimates that the windfall tax will generate revenue of about Rs 25,000 crore in the current financial year.
Read also: 50% increase in the price of gold in three years, this is how the journey started with 10 thousand rupees
What are the prices of crude oil?
Crude oil prices are falling in the international market. According to the data, the price of Brent crude oil is trading at $ 73.24 per barrel with a decline of 0.75 percent. On the other hand, the price of WTI crude oil is trading at $ 67.15 per barrel. At present, it is seeing a decline of 0.72 percent. Crude oil is trading at Rs 5,586 per barrel with a gain of Rs 54 per barrel on India’s futures market Multi Commodity Exchange. By the way, crude oil crossed Rs 5,600 during the trading session.