The Centre on February 16 slashed the windfall profit tax levied on crude petroleum and reduced the special additional excise duty on diesel, ATF (Aviation Turbine Fuel), CNBC-TV18 reported.
As per the report, windfall tax on crude petroleum has been reduced to Rs 4,350 per tonne from Rs 5,050, while the special additional excise duty on ATF has been cut to Rs 1 from Rs 6 per litre. Further, the government has also reduced special additional excise duty on diesel to Rs 3 from Rs 7.5 per litre, while petrol continues to have zero special additional excise duty, the report said.
Windfall tax is levied by governments when an industry unexpectedly earns large profits — primarily due to an unprecedented event.
The seven-month-old windfall profit tax on domestically produced crude oil and export of fuel is likely to give about Rs 25,000 crore in the current fiscal ending March 31 and the levy will continue for now as international oil prices are up again, PTI had reported earlier citing top government officials.
"As of now, crude prices are again on the rise. So, for the time being windfall tax will continue," CBIC chairman Vivek Johri told PTI.
Separately, Revenue Secretary Sanjay Malhotra said the budget has estimated collection from windfall tax at Rs 25,000 crore in the current fiscal.
As the geopolitical situation continues to be volatile, Johri said it would be "difficult to predict how long the windfall taxes will continue".
India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
