Govt raises windfall tax on domestic crude oil from to Rs 4900 tonne

Windfall tax hiked:  union government has announced an increase in windfall tax from Rs 4,600 to Rs 4,900 per tonnes on domestically produced crude oil effective immediately, government release said on Friday. This justment excludes SAED on diesel, petrol, and jet fuel exports, which remains untouched at nil.

This decision, outlined in an official notification, comes against backdrop of India's initial imposition of windfall profit taxes in July 2022. Joining a cohort of nations leveraging such taxes to rein in supernormal profits garnered by energy corporations, India's approach underscores a commitment to equitable economic practices.

Crucially, se tax rates undergo bi-weekly reviews, contingent upon average oil prices over preceding fortnight. This process reflects government's responsiveness to fluctuating global energy prices and ir potential impact on domestic economic dynamics.

As India navigates complexities of global energy landscape, such policy measures serve as strategic pillars highlights nation's economic resilience and stability.

With PTI Inputs