India cuts all windfall tax onc

According to a government notification, the federal government has withdrawn all windfall taxes on crude oil with immediate effect.
This comes as global crude oil prices rose after a group of oil-producing nations agreed to cut production in May this year. Oil producers in the Organization of Petroleum Exporting Countries (OPEC) Plus declared additional output cuts of around 1.16 million barrels per day. Taking into consideration, the huge margins accumulated by domestic crude producers because of rising global crude prices, the Centre imposed a crude oil cess of Rs 23,250 per tonne in July 2022. Since then, the government has periodically reduced the windfall levy on crude oil.
A tax levied on an unforeseen or unexpectedly large profit is called a windfall tax.

TDG Network

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