Government's Windfall Tax Review: A Necessity Amid Stabilized Crude Prices

The Finance Ministry is set to review the windfall tax on petrol, diesel, and ATF exports following stabilized global crude prices. Initially imposed in July 2022 to curb profits from exports over domestic supplies, the tax was recently reduced on domestic crude oil. Discussions about including natural gas under GST are also underway.

The Finance Ministry plans to reassess the windfall tax imposed on the export of petrol, diesel, and Aviation Turbine Fuel (ATF), citing stabilizing global crude oil prices, according to reliable sources.

Introduced in July 2022 to counter excessive profits from exporting fuel, this tax aimed to prioritize domestic supply needs. Recently, the government reduced the windfall tax on domestically produced crude oil to 'nil' per tonne as part of its ongoing revisions.

Furthermore, the potential inclusion of natural gas under the Goods and Services Tax (GST) framework is up for consideration, following a proposal made by the Ministry of Petroleum and Natural Gas to the Finance Ministry.

(With inputs from agencies.)