Govt lowers Windfall Tax on Petroleum Crude by Rs. 2,700 per Tonne
Witheffect from May 16th, 2024, the government lowered the windfall tax on petroleum crude to rs. 5,700 from Rs. 8,400
Windfall Tax on Petroleum Crude – Tax on Petroleum Crude – Crude oil tax – Crude oil update – taxscan
Windfall Tax on Petroleum Crude – Tax on Petroleum Crude – Crude oil tax – Crude oil update – taxscan
The Central Government has revised the windfall tax on petroleum crude, reducing it from Rs. 8,400 to Rs. 5,700 per tonne, effective May 16th, 2024, marking a significant decrease of Rs. 2,700.
This adjustment follows an earlier reduction announced on April 30th, where the tax was brought down from Rs. 9,600 to Rs. 8,400. Prior to that, there was a notable increase in the windfall tax from Rs. 6,800 to Rs. 9,600 per tonne, implemented from April 4th, 2024, until April 30th, resulting in a substantial rise of Rs. 4,700.
The windfall tax is designed 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. However, the recent adjustment in this tax is anticipated to pose challenges for the industry due to the heightened duty. This reduction in the tax will help the petroleum companies.
Moreover, the future outlook for petroleum crude remains uncertain, subject to unpredictable fluctuations encompassing both peaks and troughs. For the complete text of the Order, refer to the link provided.
To Read the full text of the Order CLICK HERE
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