Central government reduced windfall tax on crude oil, these companies will get benefit

The Central Government has drastically reduced the windfall tax on crude oil to Rs 3,250 per tonne. Last fortnight it was Rs 5,200 per tonne. Domestic crude oil producing companies like ONGC and Oil India directly benefit from reduction in windfall tax. According to the notification issued by the government, the new tax rate has become effective from June 15. Windfall tax on diesel, petrol and aviation fuel (ATF) has been retained at zero.

Tax is reviewed in 15 days

Windfall tax is reviewed by the government every 15 days. Windfall tax on crude oil has been reduced several times in recent months. On June 1, it was reduced from Rs 5,700 per tonne to Rs 5,200 per tonne. At the same time, on May 16, the government had reduced the windfall tax on crude oil from Rs 8,400 to Rs 5,700 per tonne. Earlier on May 1, it was reduced from Rs 9,600 to Rs 8,400 per tonne.

Windfall tax started from 2022

Domestic petroleum producing companies like ONGC and Oil India directly benefit from reducing windfall tax on crude oil. Windfall tax is imposed on unexpected profits made by companies due to increase in the price of crude oil. It was started from July 2022.