Windfall Tax Increased: The government has given a blow to the oil companies by increasing the tax and has increased the windfall tax on diesel as well as aviation fuel. The government has increased the windfall tax on domestically produced crude oil. Along with this, windfall tax has also been increased on aviation fuel and windfall tax has also been increased on high speed diesel.
When will the new rates be applicable
The revised rates of increased windfall tax on these petroleum products have come into force from today, January 3, 2023. In a notification, the Finance Ministry said that based on the new rates, the tax on domestically produced crude oil, aviation turbine fuel and high speed diesel has been increased.
Know the new rates of windfall tax
- Windfall tax on domestically produced crude oil has been increased from Rs 1700 per tonne to Rs 2100 per tonne.
- The windfall tax on aviation fuel or jet fuel has been increased to Rs 4.5 per liter from Rs 1.5 per liter earlier.
- Apart from this, the windfall tax on high speed diesel going for export has been increased to Rs 7.5 per liter from Rs 5 per liter earlier.
- There has been no change in the additional excise duty on petrol and it is at zero.
Earlier, the central government had reduced the windfall tax on December 16.
The central government had earlier reduced the windfall tax on domestically produced crude oil on 16 December 2022 and also reduced the levy on diesel. At that time, the windfall tax on locally produced crude oil has been reduced from Rs 4,900 per tonne to Rs 1,700 per tonne.
What is windfall tax
Windfall tax is levied on such companies or industries which get huge benefits due to certain conditions. The Government of India had imposed windfall tax for the first time on 1st July. At that time, an export duty of Rs 6 per liter was imposed on petrol and ATF and Rs 13 per liter on diesel. At the same time, a windfall profit tax of Rs 23,250 per tonne was imposed on the production of crude domestic oil.
