In view of the decrease in global crude oil prices, the government has reduced the recently imposed tax on the export of petroleum products. The government had imposed windfall tax on the export of diesel, petrol and aviation fuel.
Windfall tax was imposed three weeks ago
Reliance and government oil companies benefit
In view of the decrease in the global crude oil prices, the government has reduced the recently imposed tax on the export of petroleum products (Winfall Tax). The government had imposed windfall tax on the export of diesel, petrol and aviation fuel (ATF) just three weeks ago. Government oil companies like ONGC, including Reliance Industries (RIL), the largest Indian exporter of petroleum products, are also going to benefit from this decision of the government.
Tax on exports seemed so much
The government had decided to increase the export duty on petrol, diesel and aviation fuel three weeks ago in view of the continuing rise in the price of crude oil. The government had taken this decision at a time when domestic refinery companies were making huge profits by exporting diesel, petrol and ATF. The government had increased the duty on the export of petrol and ATF by Rs 6 per liter. Similarly, the duty on export of diesel was increased by Rs 13 per liter. Apart from these, the government had told in a separate notification that it has also been decided to impose an additional tax of Rs 23,230 per tonne on domestic crude oil.
Now the tax has come down so much
According to a latest notification of the government, windfall tax on diesel and aviation fuel has been reduced by Rs 2 per liter. At the same time, in the case of petrol, the windfall tax at the rate of Rs 6 per liter has been completely removed. Apart from these, the tax on the export of domestically produced crude oil has been reduced by about 27 per cent to Rs 17,000 per ton now. Bloomberg first reported on Thursday last week that the Indian government is considering reducing the windfall tax recently imposed.
This will have an effect on the stock market
The central government had announced the imposition of windfall tax on petroleum products from July 01. Many countries were then levying this type of windfall tax to get a share in the huge profits being made by the refinery companies. However, since then the global crude oil prices have softened. Due to this, the profit being made by crude oil producing and refinery companies was reduced. Now such companies will get relief due to reduced tax. Due to this, the shares of these companies can see a rise today.