look news india
Windfall tax on crude oil reduced : Before the results of Lok Sabha elections, people can get a big relief on the issue of price of petrol and diesel. The central government has reduced the windfall tax on domestically produced crude oil. The government is charging Rs. per ton of crude oil. Rs 8400 less unexpected taxes. It has become 5700. That means it includes Rs. Rs 2700 has been reduced. Earlier the central government had continuously increased the windfall tax, now the government has reduced the tax for the second time. This tax is specifically levied in the form of Additional Excise Duty (SAED).
The new price is effective from today
There has been no increase in additional excise duty on exports of diesel, petrol and jet fuel or ATF. CBIC i.e. Central Board of Indirect Taxes has said in an official order that the new price has been implemented from May 16. Specifically, windfall tax is a type of tax that is imposed on the producer on profits exceeding a certain limit. It is noteworthy that the government reviews the windfall tax every 15 days.
Earlier on May 1, windfall tax was reduced
Earlier, the windfall tax was continuously increased, but on May 1, the central government decided to reduce the windfall tax on crude oil for the first time. The government had reduced the windfall tax from Rs 9600 per tonne to Rs 8400. Earlier on April 16, the tax was increased from Rs 6800 to Rs 9600. Whereas a year before that, windfall tax was increased from Rs 4900 to Rs 6800 per tonne.
Windfall tax was implemented in the year 2022
Windfall tax in India was implemented on 1 July-2022. With this, India joined those countries where tax is imposed on the profits of energy companies. Meanwhile, duty was also imposed on exports of diesel, petrol and aviation fuel. Many private refineries used to export diesel, petrol and ATF instead of domestic market to earn profits. The government reviews the windfall tax every 15 days and decides to increase or decrease it keeping in mind the international market.