The Central Government has dropped the windfall tax on crude petroleum by Rs, 1.,300 per tonne to Rs. 5000 per tonne. The reduction in the windfall tax from Rs 6,300 to Rs 5,000 per tonne represents a substantial decrease of Rs 1,300. This move follows a pattern of adjustments in the tax rates, as demonstrated by earlier revisions on November 16.
On that date, the government had already implemented a reduction in the windfall tax on both diesel and crude oil. The windfall tax on crude oil had been lowered from Rs 9,800 to Rs 6,300 per tonne, while the tax on diesel experienced a halving from Rs 2 to Rs 1 per litre. Importantly, the export levy on jet fuel and petrol remained unchanged at zero during this period.
Going back to October, there was a significant change in the windfall tax landscape. The tax on crude oil had been raised to Rs 9,800 per tonne from Rs 9,050, marking a notable increase. Simultaneously, the tax on aviation turbine fuel had been removed at that time, indicating a dynamic regulatory environment.
It’s crucial to note that the tax rates are subject to fortnightly reviews, with adjustments based on average oil prices in the preceding two weeks. This flexible approach reflects the government’s responsiveness to the volatile nature of global oil markets and its commitment to adapting taxation policies accordingly.
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