Relief to oil companies, government reduced windfall tax on crude oil, reduced export tax on diesel


Windfall Tax Cut: There has been a fall in the prices of crude oil in the international market, after which the central government has decided to reduce the windfall tax on domestic crude oil on Thursday. The government has also reduced the export tax on the export of diesel. Issuing a notification, the government has decided to reduce the windfall tax on domestic crude oil by $60.34 i.e. Rs 4900 per tonne. At the same time, the export tax on diesel has also been reduced by Rs 8 per litre. 

Windfall tax is fixed on the prices received by the producers above a certain limit. Whereas export tax is levied on the difference between the cost and the international oil price. The Central Government had decided to impose Windfall Tax on the country’s oil refining and marketing companies from July 1, 2022, in view of the huge profit from exports, which is reviewed every 15 days. It was decided to increase the export duty on exports of Rs.  

This decision of the government will benefit Reliance Industries because the company is one of the largest exporters of petrol, diesel and aviation fuel, while it also produces crude oil. ONGC, Oil India will also benefit from this decision.  

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