The Finance Ministry would evaluate the efficacy of windfall tax on the export of petrol, diesel and Aviation Turbine Gasoline (ATF) as international crude oil costs have stabilised, sources mentioned. Phenomenal earnings made by some oil refiners on exporting gasoline on the expense of home provides had prompted the federal government to introduce an export tax on petrol, diesel and ATF in July 2022.
The finance ministry goes to evaluate the windfall tax and tax being mobilised out of this, sources mentioned.
The Ministry of Petroleum and Pure Gasoline has already written to the Finance Ministry on this regard, sources mentioned.
The federal government in September slashed the windfall tax on domestically produced crude oil to ‘nil’ per tonne.
The tax is levied within the type of Particular Further Excise Responsibility (SAED) and is notified fortnightly based mostly on common oil costs in two weeks.
The final such revision happened efficient August 31 when the windfall tax on crude petroleum was set at Rs 1,850 per tonne.
The SAED on the export of diesel, petrol and jet gasoline or ATF, has been retained at ‘nil’ with impact from September 18.
India first imposed windfall revenue taxes on July 1, 2022, becoming a member of a number of countries that tax supernormal earnings of power corporations.
Sources additionally mentioned the Ministry of Petroleum and Pure Gasoline has written a letter to the Finance Ministry to contemplate bringing pure gasoline beneath the Items and Providers Tax (GST) ambit.
It’s for the GST Council headed by the Union Finance Minister to contemplate the proposal and take a name on this, sources added.
