The Central Government has implemented a substantial increase in the windfall tax on petroleum crude, raising it from Rs. 6,800 to Rs. 9,600 per tonne, effective as of April 16, 2024. There is a surge of Rs. 2,800 in a single move.
Earlier, on April 4, the government had raised the windfall tax on petroleum crude from ₹4,900 to ₹6,800 per metric ton. With effect from April 4, 2024, the petroleum crude witnessed a raise in windfall tax of Rs. 4,700.
This adjustment supersedes the prior notification issued on April 4, 2024, as outlined in notification no. 12/2024 – Central Excise, dated April 15, 2024.
The windfall tax targets unanticipated or excessive profits, typically levied on sectors experiencing significant gains. Its purpose is to reclaim surplus earnings generated by companies due to unforeseen market conditions. This latest hike is poised to adversely affect the industry, given the heightened duty. Furthermore, the future of petroleum crude is uncertain, as it can fluctuate unpredictably, experiencing both ups and downs.
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