The Central Government has revised the windfall tax on petroleum crude, reducing it from Rs. 5,700 to Rs. 5,200 per tonne, effective from 1st June, 2024, marking a decrease of Rs. 500.
This adjustment comes after a previous tax reduction 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 windfall tax, raising it from Rs. 6,800 to Rs. 9,600 per tonne, marking an increase of Rs. 2,800.
The windfall tax is 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.
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