The Centre has decided to scrap the windfall tax, a levy imposed on local production of crude oil and exports of petrol, diesel and jet fuel, at a time of subdued oil prices.
A decision to this effect has been taken at the top level in the government, and the finance ministry may shortly issue an order, two people familiar with the development said.
Windfall tax was imposed in 2022, as a surge in oil prices to multi-year highs in the wake of the Russia-Ukraine war allowed oil and gas companies to make windfall profits.
The tax is levied in the form of a special additional excise duty, and as additional excise duty or road and infrastructure cess on the export of fuel.
It is reviewed every fortnight, based on their average prices in the preceding two weeks.
"The petroleum ministry recently wrote to the finance ministry and sought scrapping of the levy. With oil prices remaining subdued, there is not much significance in the levy anymore," said one of the two people quoted above.
Queries emailed on Thursday to the petroleum and finance ministries remained unanswered.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Becoming better at work with daily reflection
Fujifilm India's Arun Babu on the significance of constant learning
A new incentive structure could help preserve standing forests
The proposed tropical forest forever facility would use blended finance to reward countries for protecting their green cover
Using AI in workflow to make work less stressful
Al's role in workflow automation goes beyond efficiency-it also directly impacts employee well-being
Let someone else play knight in shining armour for Disney
CEO Iger should quit can-kicking and help the next chief succeed
Thomas E. Kurtz gave us our Basic lessons in software
He wanted computers kept accessible, as seen in the programming language he pioneered
Why the 5-star hotel experience needs urgent reforms
From gagging TV sets to guiding guests on surviving tucked-in beds, plenty needs to be fixed
COP-29 could not escape the US election's impact
The $300 billion pledged by rich countries as climate funding is grossly insufficient. True, Trump's US may revert to climate scepticism, but others must try harder to mobilize funds
Empower women to participate equally in Digital India's success
We must go beyond bridging gaps in internet access and maximize women's agency in using devices
THE PROMISE AND CHALLENGES OF INSURANCE REFORM
One of the most awaited results of the hike in foreign holding is the infusion of capital
Sending money abroad? Here's how you can reclaim your TCS
I want to send money to my son in US under the Liberalised Remittance Scheme (LRS). I understand that tax collected at source (TCS) is paid on the transaction. How can I reclaim it?
