Guwahati: Oil companies stand to gain as Govt. slashes windfall tax
Major Indian oil companies will benefit hugely as the government announced a drastic cut in windfall tax on locally produced oil.
Windfall tax has been brought down to Rs. 4,900. Moreover, it has also cut the export tax on diesel to Rs. 6.5 per litre.
These rates would come into effect from December 2, 2022.
Windfall tax, which is also known as special additional excise duty, was brought in by the government on July 1 this year to tax the industry on extraordinary profits, which it earned through the sale of refined crude in global markets.
The government reviews this tax every fortnight.
When the government introduced a windfall tax in July, the export duty of Rs. 6 per litre each was levied on petrol and jet fuel. In addition to this, the export duty of Rs. 13 per litre was also imposed on diesel.
Several major oil companies were hit by this tax and some of them had urged the government to withdraw it and rather adopt the dividend method to seek accruals.
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