Centre lowers windfall tax on crude oil to Rs 5,000/tonne

Windfall tax lowered on crude oil

The government on Decemeber 1 has lowered the windfall tax on crude petroleum to Rs 5,000 per tonne from Rs 6,300 a tonne. The levy on jet fuel too has been lowered to Rs 1.06 lakh per kilo litre (kL) from Rs 1.11 lakh/kL.

The windfall tax is revised every fortnight based on the movements of international crude and product prices. Crude oil prices are currently trading around $82 per barrel.

In the last fortnightly review on November 16, the government slashed windfall tax on crude petroleum to Rs 6,300 per tonne to Rs 9,800 per tonne.

India first imposed windfall tax in July 2022 amid soaring crude oil prices. Windfall tax is levied by governments when an industry unexpectedly earns large profits — primarily due to an unprecedented event.