The Finance Ministry will review the effectiveness of windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF).
The finance ministry will review the effectiveness of windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF) as global crude oil prices have stabilised, sources said.
The exorbitant profits made by some oil refiners on fuel exports at the expense of domestic supplies prompted the government to introduce export taxes on petrol, diesel and ATF in July 2022.
Sources said the finance ministry is going to review the windfall tax and the tax being collected from it.
Sources said that the Ministry of Petroleum and Natural Gas has already written to the Finance Ministry in this regard.
The government had reduced the windfall tax on domestically produced crude oil to ‘nil’ per tonne in September.
This tax is levied in the form of Special Additional Excise Duty (SAED) and is notified fortnightly based on the average of oil prices over two weeks.
The last such amendment came into force on August 31 when the windfall tax on crude petroleum was Rs. 1,850 per tonne was fixed.
SAED on exports of diesel, petrol and jet fuel, or ATF, has been retained at ‘nil’ with effect from September 18.
India first imposed a windfall profit tax on July 1, 2022, joining countries taxing supernormal profits of energy companies.
Sources also said that the Ministry of Petroleum and Natural Gas has written to the Finance Ministry to consider bringing natural gas under the purview of Goods and Services Tax (GST).
The GST Council, headed by the Union Finance Minister, will consider the proposal and take a decision, the sources added.