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Windfall Tax In India: A big jump can be seen in the stock of Reliance Industries in Wednesday’s trading session. Not only Reliance Industries, but other companies in the petroleum sector, ONGC and Oil India can also see a bright spot. The reason is this report of rating agency Fitch. Fitch Ratings has said that in 2023, the windfall tax on oil companies can be abolished.
Possible rise in Reliance’s stock!
If the government abolishes the windfall tax imposed on oil companies, then Reliance Industries can get its biggest benefit. In fact, on July 1, 2022, when the government announced the imposition of windfall tax, there was a record decline in the stock of Reliance. In one trading session, Reliance’s stock fell 9 percent. But due to the news that Fitch Ratings is expected to withdraw the windfall tax, the stock of Reliance can be seen enthusiastically. On Tuesday, Reliance’s stock closed at Rs 2690 with a gain of 0.29 per cent.
Review happens after 15 days
Only Reliance, while the shares of Chennai Petroleum, Mangalore Refinery, ONGC and Oil India can also see a boom. In fact, the government had imposed Windfall Tax to the country’s oil refining and marketing companies in view of the huge profits being made from the export of petrol, diesel and ATF. So windfall tax was also imposed on domestic crude oil. The review is done every 15 days. The government later abolished the provision of tax on export of petrol. Now it is believed that after a big fall in the prices of crude oil, from the windfall tax on crude oil to the export tax on the export of diesel, it can be abolished.
Recently reduced windfall tax
While issuing a notification on December 1, the government reduced the windfall tax on domestic crude oil from Rs 10,200 to Rs 4,900 per tonne and the export tax on diesel from Rs 10.50 to Rs 8 per litre.
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