Government cuts windfall tax on crude oil as global oil prices eases

Tags: Economy/Finance

The government of India has announced a cut in the windfall tax on the domestically produced crude oil on 2 October 2022 after the fall in the international crude oil prices.

The windfall tax on domestically produced crude oil   has been reduced to Rs 8000 per tonnes from earlier Rs 10,500 per tonne.

Similarly the government has reduced the export duties on diesel to Rs 5 per liters from earlier Rs 10 per litre.

The export duty on Jet aviation fuel was also reduced to 0%.

The special taxes on the oil sectors were imposed by the government on 1 July 2022 after a steep increase in the price of crude oils in the International market. The special taxes were imposed as the government claimed that the oil companies were earning abnormal profits.

The finance minister Nirmala Sitharaman had promised that the government will review the taxes every fortnight and reduce the taxes if the International oil prices come down.

The duties were partially adjusted in the previous five rounds on July 20, August 2, August 19, September 1 and September 16 and were removed for petrol.