The central government on Saturday increased the windfall tax on crude oil. Now windfall tax will be imposed on crude oil at the rate of Rs 3,200 per tonne. The new rates have become effective today, February 3. Earlier, windfall tax of Rs 1,700 per tonne was being imposed on crude oil.
Zero tax on diesel-petrol
While in the case of diesel, petrol and aviation fuel, the government has imposed windfall tax. There has been no change in tax. Windfall tax rates on diesel, petrol and ATF were zero. In future also, the windfall tax on them is going to remain zero till the next update.
What is windfall tax
Windfall tax is a kind of additional custom duty. Through this, the government deposits some part in the treasury from the companies earning huge profits from the trading of crude oil and other petroleum products. In view of the fluctuations in global energy trade during the last one and a half year, many countries are imposing windfall tax on crude oil and petroleum products.
Changes happen every two weeks
< p>In India, the government had imposed windfall tax on crude oil in July 2022. Apart from crude oil producers, the government had also imposed windfall tax on exports of petrol, diesel and aviation fuel. The government reviews the windfall tax every two weeks. Earlier, in the changes made on January 16, the rates of windfall tax on crude oil were reduced. Then the government reduced it to Rs 1,700 per tonne. Whereas zero windfall tax was kept on diesel, petrol and ATF.
Due to this the balance got disturbed
The war between Russia and Ukraine in Eastern Europe will start in the month of February 2022. After this the balance of the energy market has been disturbed. America and its allied countries have imposed many economic sanctions on Russia, which also include restrictions on the purchase of energy i.e. crude oil and petroleum products. Companies in countries like India have benefited from this.
Oil companies are earning profits like this
Due to economic restrictions, the prices of petroleum products have increased significantly across the world, especially in Europe. In such a situation, to earn more profits, many Indian companies started exporting crude oil, diesel, petrol and ATF etc. instead of the domestic market.
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