Finance Ministry to assessment efficacy of windfall tax on crude oil and gas exports

The Finance Ministry would assessment the efficacy of windfall tax on the export of petrol, diesel and Aviation Turbine Gas (ATF) as world crude oil costs have stabilised, sources mentioned. Phenomenal earnings made by some oil refiners on exporting gas on the expense of home provides had prompted the federal government to introduce an export tax on petrol, diesel and ATF in July 2022.

The finance ministry goes to assessment the windfall tax and tax being mobilised out of this, sources mentioned.

The Ministry of Petroleum and Pure Fuel has already written to the Finance Ministry on this regard, sources mentioned.

The federal government in September slashed the windfall tax on domestically produced crude oil to ‘nil’ per tonne.

The tax is levied within the type of Particular Further Excise Responsibility (SAED) and is notified fortnightly primarily based on common oil costs in two weeks.

The final such revision happened efficient August 31 when the windfall tax on crude petroleum was set at Rs 1,850 per tonne.

The SAED on the export of diesel, petrol and jet gas or ATF, has been retained at ‘nil’ with impact from September 18.

India first imposed windfall revenue taxes on July 1, 2022, becoming a member of a bunch of countries that tax supernormal earnings of power firms.

Sources additionally mentioned the Ministry of Petroleum and Pure Fuel has written a letter to the Finance Ministry to contemplate bringing pure fuel beneath the Items and Providers Tax (GST) ambit.

It’s for the GST Council headed by the Union Finance Minister to contemplate the proposal and take a name on this, sources added.