The Central Government has lowered the windfall tax on petroleum crude, from Rs. 9,600 to Rs. 8400 per tonne, effective from May 1st, 2024. The tax was lowered by Rs. 1200.
Earlier, the government has raised the windfall tax on petroleum crude from Rs. 6,800 to Rs. 9,600 per tonne. With effect from April 4, 2024, to 30th April, the petroleum crude witnessed a raise in windfall tax of Rs. 4,700.
This adjustment supersedes the prior notification issued on April 15, 2024, as outlined in notification no. 13/2024 – Central Excise, dated 30th April, 2024.
The windfall tax is aimed at addressing unanticipated or excessive profits, often imposed on sectors witnessing substantial gains. Its objective is to recapture surplus earnings accrued by companies owing to unforeseen market conditions. The recent increase in this tax is expected to have adverse effects on the industry due to the heightened duty. Additionally, the future of petroleum crude remains uncertain, prone to unpredictable fluctuations, encompassing both highs and lows.
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