Windfall Tax: The Central Government has once again announced changes in the windfall tax on Monday. By issuing a notification in this matter, the government has reduced the windfall tax on petroleum crude from Rs 2300 per tonne to Rs 1700 per tonne. These new rates have come into effect from Tuesday, January 16, 2024. Earlier, in the review meeting held on January 2, it was decided to increase the windfall tax on domestically produced crude oil and increased it from Rs 1,300 per tonne to Rs 2,300 per tonne.
How much was the windfall tax reduced?
In the last review meeting, the government had decided to collect windfall tax on petroleum crude at the rate of Rs 2,300 per tonne. In such a situation, on Monday it has been reduced by Rs 600 per tonne, now it has become Rs 1,700 per tonne. This tax is taken in the form of Special Additional Excise Duty (SAED).
Government imposed windfall tax for the first time in July 2022
The central government decides the rates of windfall tax and export tax on the export of crude oil in the country. For this, a review meeting is held by the government every 15 days. The government decides the windfall tax on crude oil considering the prices of crude oil in the last two weeks. It was first implemented in July 2022. Since then, every 15 days, the Central Government reviews the windfall tax on petrol, diesel and aviation turbine fuel and decides new rates.
ATF is not being taxed
In the review meeting held on January 2, the government had decided to reduce the tax on jet fuel i.e. aviation turbine fuel and reduced it from Rs 0.50 per liter to zero. Earlier, in the review meeting held on December 19, the tax on ATF was reduced from Rs 1 per liter to Rs 0.50.
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