New Delhi: In a latest revision govt of India has cut the windfall gains tax on fuel exports, lowering it to Rs 1.5 per litre for petrol from Rs 3 and diesel rates have been revised to Rs 13.5 from Rs 16.5 per litre. Air Turbine Fuel windfall gains tax under the revised rates is reduced to Rs 9.5 per litre from Rs 16 with the revised rates coming into effect from Monday, June 1 onwards, according to a notification by the Ministry of Finance.
However, no change in Petrol and diesel for domestic consumption was reported.
The rate revision is based on the average international prices of crude oil, petrol and diesel and ATF. The rate revision is done on a fortnightly basis since the last change on May16.
With the soaring crude oil prices, amidst the tensions in the Middle East oil companies in India made extraordinary profits. The latest revision comes at a time when supply and demand chain is disrupted due to the blockade of the Strait of Hormuz- a strategic water way for global trade. – which has increased pressure on oil markets prompting reassessment of export levies.
A windfall tax is a higher tax levied by the government on specific industries when the industry experiences unexpected and above-average profits due to various global and geopolitical events outside the control of the industry. The government imposes this tax when it notices a sudden rise in an industry’s revenue.
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