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Windfall Tax | Oil marketing companies may bargain with refiners, says Revenue Secretary Tarun Bajaj

The quantum of duties will be reviewed every 15 days to see how the international prices have moved, based on which action will be taken

July 04, 2022 / 11:03 AM IST
Revenue Secretary Tarun Bajaj

Revenue Secretary Tarun Bajaj

Revenue Secretary Tarun Bajaj said that since refineries can avoid windfall tax by giving the products to oil marketing companies, instead of exporting them, the OMCs will "hopefully and obviously" negotiate the prices.

He, however, said in an interview to CNBC-TV18 that the quantum of duties will be reviewed every 15 days to see how the international prices have moved, based on which action will be taken.

The government on July 1 levied a Rs 6 per litre tax on exports of petrol and aviation turbine fuel (ATF) or jet fuel and Rs 13 per litre on exports of diesel. That apart, it also imposed Rs 23,230 per tonne additional tax on domestically produced crude oil to take away the windfall gains accruing to producers from high international oil prices, a separate government notification showed.

Speaking on the five-years of GST journey, Bajaj said, the fiscal deficit is also more or less in control but its too early to tell, as we're just entering the second quarter of the year

He emphasised that if inflation is to be controlled, there is going to be some impact on the growth in the coming quarters.

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"But my own presumption is that, seven and a half to eight percent of GST growth and a nominal growth of 14 to 15 percent is achievable," added Bajaj.
first published: Jul 4, 2022 10:16 am
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