Govt to review scrapping of windfall tax on crude: PMO Advisor

Windfall tax

The Union finance ministry will mull scrapping windfall tax on local crude oil output, Tarun Kapoor, an advisor to Prime Minister Narendra Modi's  office, said on October 23.

According to Kapoor, the windfall tax on crude oil has no relevance now as global oil prices have softened sharply compared to 2022, when the tax was first levied.

"Finance ministry will take a view ...I think petroleum ministry has already written to them," Kapoor told reporters on the sidelines of an event.

Earlier, the government had slashed windfall tax on domestically produced crude oil by 11.9 percent to Rs 1,850 per tonne from previous Rs 2,100 per tonne, effective from August 31.

Windfall tax on export of diesel and aviation turbine fuel (ATF) was retained at nil.

With Reuters input