Windfall Profit Tax on Export of Diesel Hiked: The government recently has increased the windfall profit tax on the export of diesel to Rs 13.5 per litre and that on jet fuel exports to Rs 9 per litre.
The levy on domestically-produced crude oil too has been increased by Rs 300 per tonne to Rs 13,300. At the fourth fortnightly review, the government raised the windfall profit tax on the export of diesel to Rs 13.5 per litre from Rs 7, while on ATF (Aviation Turbine Fuel) exports, it was hiked to Rs 9 per litre from Rs 2, according to a finance ministry notification issued on Wednesday.
The revision comes into effect from September 1, 2022.
Bhavik Patel, senior commodity/currency research analyst at TradeBulls Securities, said: “Center had stated that they will review windfall tax every 15 days depending on crude price, foreign exchange rate and market condition. They have revised the cess on the export of aviation turbine fuel and on the export of diesel. The reason behind increasing the cess is twofold. One is Indian rupee has traded to a fresh all-time low this week on account of the strong US Dollar. And the second reason is the rise in crude oil prices. Of recent, there has been a resurging in the price of crude oil although it has again cooled off but the Indian rupee continues to trade weak making buying crude oil expensive and negating any effect of a fall in crude oil internationally. So the government had to increase the cess looking at a weak exchange rate of our currency.”
On July 1, Centre imposed an export duty of Rs 6 per litre on petrol and ATF and a Rs 13 a litre duty on export of diesel. A windfall tax of Rs 23,250 per tonne was imposed on the sale of domestic crude.
Also for nearly two weeks, the sale of crude oil produced in India attracted an additional duty of Rs 13,000 per tonne, after it was lowered from Rs 17,750 per tonne with effect from August 19.
The windfall tax is a one-off tax imposed by a government on a company on an unforeseen or unexpectedly large profit, especially unfairly obtained. Domestic producers made windfall gains on high international crude prices, which reached as high as $122 per barrel recently.
After announcing the decision to impose the windfall tax, Revenue Secretary Tarun Bajaj said, “The taxation would be reviewed every 15 days depending upon international crude prices… If crude prices fall, then windfall gains will cease and windfall taxes would also be removed.”
“If a cut is decided upon, it could be implemented immediately,” the Bloomberg report said.
Jet Fuel Price Slashed in Delhi
The price of ATF (aviation turbine fuel) saw a price cut on Thursday after the Central government raised the windfall profit tax on jet fuel exports.
The price of jet fuel has been cut by 0.7 per cent ( Rs 874) to Rs 1.21 lk/kl from Rs 1.22/kl in Delhi.
Read all the Latest Business News and Breaking News here
Comments
0 comment