Finance Ministry Raises windfall Tax on Petroleum Crude to Rs. 6000 per Tonne [Read Notification]
The new windfall tax came into effect from 2nd July.
Finance Ministry – windfall Tax – Petroleum Crude – Tonne – TAXSCAN
Finance Ministry – windfall Tax – Petroleum Crude – Tonne – TAXSCAN
The Finance Ministry has notified the raise in windfall tax on the petroleum crude to Rs. 6000 per tonne from Rs. 3250 per tonne. The previous notification was issued on 14th June 2024, however the same is surpassed by this new notification dated 1st July 2024.
The government raises taxes when the industry experiences gains. This is a mechanism to curb such gains. Since 2022, the government has been imposing taxes on petroleum crude, aviation fuel, diesel, etc., to regulate private refiners.
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 tax on petroleum crude, raising it from Rs. 6,800 to Rs. 9,600 per tonne, marking an increase of Rs. 2,800.
To Read the full text of the Order CLICK HERE
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