Windfall profit tax to continue for now
New Delhi, February 2
The seven-month-old windfall profit tax on domestically produced crude oil and export of fuel is likely to give about Rs 25,000 crore in the current fiscal ending March 31 and the levy will continue for now as international oil prices are up again, top government officials said.
Rs 25,000 cr MOP-UP
- The windfall profit tax on domestically produced crude oil and export of fuel is likely to give about Rs 25,000 crore in the current fiscal
“As of now, crude prices are again on the rise. So, for time being windfall tax will continue,” CBIC chairman Vivek Johri said. Separately, Revenue Secretary Sanjay Malhotra said the Budget has estimated collection from windfall tax at Rs 25,000 crore in the current fiscal.
As the geopolitical situation continues to be volatile, Johri said it would be “difficult to predict how long the windfall taxes will continue”.
India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies. At that time, export duties of Rs 6 per litre ($12 per barrel) each were levied on petrol and ATF, and Rs 13 a litre ($26 a barrel) on diesel.
A Rs 23,250 per tonne ($40 per barrel) windfall profit tax on domestic crude production was also levied.
