Oil Export Review: The Central Government has now taken a big decision regarding the review of windfall profit tax on oil exports. Let us tell you that the recently implemented windfall profit tax on oil produced in India and fuel exported abroad will be reviewed by the government every fortnight i.e. two weeks.
On what basis will the review be done?
A government official said that this review will be done on the basis of foreign exchange rate and crude oil prices in the international market. However, no stage has been fixed yet for the withdrawal of these taxes.
Know what the Revenue Secretary said
Revenue Secretary Tarun Bajaj said that it is currently unrealistic for oil prices to return to the level of $ 40 per barrel to withdraw the cess, given the current international oil rates. The review is based on the premise that if the price of crude oil falls, windfall gains will be wiped out and new taxes will be rolled back.
Review every two weeks
Bajaj has said that we will review it every two weeks based on foreign currency exchange rates and international prices. He has said that what is the exchange rate of dollar to rupee, the price of diesel, crude oil in the international market, what is the domestic cost of crude oil, we will continue to review it. Once we review, you’ll understand for yourself.
How much tax has been imposed?
From July 1, India has become one of the few countries globally which have imposed tax on windfall gains to petroleum companies from rising energy prices. The government has imposed a tax of Rs 6 per liter on the export of petrol and aviation fuel (ATF) and Rs 13 per liter on the export of diesel with effect from July 1. Apart from this, a tax of Rs 23,250 per tonne has been imposed on domestically produced crude oil.
Government will have revenue of 1 lakh crore
On May 23, the government had cut excise duty on petrol by Rs 8 per liter. Excise duty on diesel was reduced by Rs 6 per litre. Finance Minister Nirmala Sitharaman had said at that time that the government would lose revenue of one lakh crore rupees annually due to excise duty cut.
What was the price of crude oil on Monday?
Meanwhile, Brent crude was at a price of $ 112.03 per barrel on Monday. On the other hand, the rupee fell to 78.99 against the US dollar in early trade on Monday. CBIC chairman Vivek Johri also said that no limit has been fixed yet for review of windfall profit tax. In response to a question, he has said that no, we have not thought about it. Rates will be reviewed every 15 days based on the prices of crude oil and refined products in the international market.