The Central Government has revised the windfall tax on petroleum crude, reducing it from Rs. 5,200 to Rs.3250 per tonne, effective from 15th June, 2024, marking a decrease of Rs. 1950. Compared to the notable hike to Rs. 9,600 per tonne in April 2024, the new rate is lower.
This adjustment comes after a previous tax reduction on 31st may reduce the tax to Rs. 5,200 from Rs. 5700. Further, on 16th May 2024 from Rs. 8,400 to Rs. 5,700 per tonne. Earlier, from April 30th, the rate was lowered from Rs. 9,600 to Rs. 8,400 per tonne. However, earlier, from April 4th to April 30th, 2024, there had been a notable hike in the windfall tax, raising it from Rs. 6,800 to Rs. 9,600 per tonne, marking an increase of Rs. 2,800.
The windfall tax is to curb unanticipated or excessive profits, typically imposed on industries experiencing significant gains. Its primary aim is to reclaim surplus earnings generated by companies due to unforeseen market conditions. As the new tax rate is too low, this would help the petroleum industry.
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