Windfall Tax Remove: A significant choice has been made by the central government today. The government has abolished the windfall tax on aviation turbine fuel (ATF), crude oil, gasoline, and diesel products. The government has been considering this matter for the past month. We would like to inform you that firms such as Reliance Industries and ONGC will gain from the elimination of the windfall tax.
This will enhance their profit margins. The government had implemented a windfall tax on local oil production. The federal government declared the windfall tax in July 2022. At that moment, an export tax of Rs 6 per liter was applied to petrol and ATF, while diesel had a rate of Rs 13 per liter. In addition, a windfall tax of Rs 23,250 per tonne was also levied on the production of domestic crude oil. In the initial year of implementing this tax, the government collected approximately Rs 25,000 crore from the duty, Rs 13,000 crore in 2023-24, and Rs 6,000 crore in the ongoing financial year.
The Central Government imposed a Road and Infrastructure Cess on the export of gasoline and diesel. That has also been taken away now. We must tell you, considerable brainstorming occurred prior to the government eliminating the windfall tax. The Prime Minister’s Office made this decision following talks with the Petroleum Ministry and the Revenue Department.
Indian oil companies began to generate substantial profits as a result of ban!
Simultaneously, significant anger existed among the oil companies because of the enforcement of windfall tax. When the conflict between Russia and Ukraine began, Western nations enacted various forms of sanctions. As a result, crude oil prices increased. However, oil companies also gained from this. Indian oil companies began to generate substantial profits as a result of this ban.