New Delhi, 20 July: The government has withdrawn the windfall tax on petrol, diesel, Aviation Turbine Fuel (ATF) and crude oil due to the fall in the price of crude oil in the international market.
In a notification issued by the Finance Ministry on Wednesday, it has been said that the tax on the export of petrol has been cut by Rs 6 per liter. Air Turbine Fuel (ATF) has been reduced from Rs 6 per liter to Rs. 4 per litre. Similarly, the applicable tax on diesel has been reduced from Rs 13 per liter to Rs 11 per litre.
Apart from this, the additional tax of Rs 23,250 on domestic crude oil products has been reduced to Rs 17,000 per tonne.
The government’s decision will benefit refined fuel exporting companies like Reliance Industries Limited (RIL) and Rosneft’s Naira Energy. In fact, these two companies export approximately 85 percent of the fuel. Since the implementation of this tax, these companies have been opposing it.
According to experts, with this decision, the government will earn about Rs one lakh crore in a year.
The government imposed this huge unexpected tax on the export of fuel on July 1, 2022, to prevent an increase in the retail price of petrol and diesel in the domestic market. In fact, the price of crude oil on the international market at the time was $120, but it has since dropped to $100. With this move by the government, there will be no reduction in the prices of petrol, diesel, and ATF.
Windfall Tax: A tax levied on an unforeseen or unexpectedly large profit, especially one regarded to be excessive or unfairly obtained.
