On 16th February, the Centre reduced the windfall profit tax levied on crude petroleum and reduced the additional excise duty imposed on diesel and ATF (Aviation Turbine Fuel)
The windfall tax on crude petroleum has been reduced from Rs 5,050 to Rs 4,350 per tonne, while the special additional excise duty on ATF has been reduced from Rs 6 to Rs 1 per liter.
Overview
According to the report, the windfall tax on crude petroleum has been reduced from Rs 5,050 to Rs 4,350 per tonne, while the special additional excise duty on ATF has been reduced from Rs 6 to Rs 1.
According to the report, the government has also reduced the special other excise duty on diesel to Rs 3 per liter from Rs 7.5 per liter. At the same time, petrol continues to have zero special additional excise duty.
Governments levy windfall taxes when an industry earns large profits unexpectedly, usually due to an unprecedented event. The seven-month-old windfall profit tax on domestically produced crude oil and fuel exports is expected to generate around Rs 25,000 crore in the current fiscal year, which ends 31st March.
End Note
“Crude prices are currently rising again. As a result, the windfall tax will remain in effect for the time being, “Vivek Johri, chairman of the CBIC, told PTI. The levy will remain in place for the time being, according to PTI, which cited top government officials.
