Windfall Tax on Crude: The Narendra Modi government at the centerhas abolished the windfall tax. In view of the significant reduction in crude prices, the government has announced to make the windfall tax zero. Issuing a notification on Tuesday, the central government said that the windfall tax will be made zero from September 18. Till now the government used to impose windfall tax at the rate of Rs 1,850 per metric ton . It was being continuously reduced.

Brent crude price now falls to $75 per barrel

The central government changes the windfall tax every fortnight. Global benchmark Brent crude prices have now come down to $75 per barrel. Earlier in April, crude prices were $92 per barrel. The notification said that the windfall tax on export of diesel, petrol and aviation turbine fuel (ATF) has been reduced from Rs 1850 per tonne to zero. The new rates will be effective from September 18. 

That is why windfall tax is imposed

This tax is levied on crude oil as Special Additional Excise Duty. Earlier on August 31, the government had changed the windfall tax. At that time, the government had reduced it from Rs 2100 per metric ton to Rs 1850 per metric ton.

This tax was imposed for the first time on July 1, 2022

For the first time in the country, windfall tax was imposed on crude oil on July 1, 2022. With this, India joined the list of countries that impose tax on unexpected profits of energy companies. Initially, it was imposed only on the country's oil producers. But, after this it started being imposed on petrol, diesel and ATF exports as well. By imposing windfall tax, the government wants to discourage private refiners from selling these fuels at high prices abroad. The government is trying to make private refiners give priority to supply in the domestic market.