The government reduced the windfall profits tax on the domestic production of crude petroleum by 900 rupees per tonne, bringing the total down from 4,400 rupees per tonne to 3,500 rupees per tonne. Starting on Tuesday, the revised fee structure will be in effect.
On March 4, the federal government increased the windfall tax on the production of crude petroleum by 50 rupees per tonne, bringing the total amount to 4,400 rupees per tonne. Previously, the tax had been set at 4,350 rupees per tonne. Companies and industries that suddenly report earnings for a variety of unanticipated reasons are subject to a tax known as a windfall tax.
On July 1 of the previous year, India implemented their first windfall gains tax. At that time, export customs were charged at a rate of Rs 6 per liter for both gasoline and ATF, while they were set at Rs 13 per liter for diesel. In addition to that, a windfall profit tax of Rs 23,250 per tonne was imposed on domestic crude extraction. Taking into account the current price of crude on the international market, windfall profit taxes are reevaluated every two weeks.
businesses started increasing their exports for the purpose of making a profit after the supply of Russian oil was disrupted internationally the previous year, which led to the government deciding to impose a windfall tax on the businesses. Companies involved in oil exploration and extraction reaped enormous benefits as a direct result of this.
On the other hand, the price of oil around the world remained unchanged on Tuesday, despite falling on Monday due to concerns among investors about the continuing crisis in the banking sector. According to the news agency Reuters, the price of a barrel of Brent petroleum rose by 5 cents, bringing it to $73.84; meanwhile, the price of a barrel of West Texas Intermediate (WTI) crude in the United States rose by 9 cents, bringing it to $67.73.
