Dec 02, 2024 08:36 PM IST
On Monday, the income division rescinded the June 30, 2022 notification that levied windfall tax on account of decline in international oil costs
NEW DELHI: The federal government on Monday withdrew windfall tax on domestically-produced crude oil and exports of petrol, diesel and aviation turbine gasoline, relenting to the trade demand after worldwide oil costs plunged.
A technician opens a stress fuel valve contained in the Oil and Pure Gasoline Corp (ONGC) group gathering station on the outskirts of the western Indian metropolis of Ahmedabad (REUTERS FILE PHOTO)
The Division of Income on Monday “rescinds” the notifications it had issued on June 30, 2022 levying the windfall tax and the choice got here into power with “immediate effect” within the “public interest”, an official stated quoting the order. “Industry wanted the government to remove the tax as there was no justification for such levies after international oil prices remained subdued for months,” he stated requesting anonymity.
The federal government imposed the windfall tax on petroleum sector from July 1, 2022 after personal refiners considerably curtailed home provide of transportation fuels and opted for exports to make enormous income on account of a spike in abroad demand. Days earlier than the choice, the benchmark Brent crude value was round $110-120 a barrel. Brent crude has been persistently under $80 a barrel since August 2024 and is at present hovering at $72 per barrel.
In line with the most recent merchandise commerce information, subdued worldwide oil costs have depressed India’s per unit realisation of petroleum product exports which plunged over two-and-a-half instances to $312.50 per tonne within the first half of 2024-25 from round $792 a tonne within the first half of 2023-24 regardless of strong bounce in volume-wise shipments.
Poor realisation by exports of refined petroleum merchandise has been a significant drag for India’s general export efficiency. Whereas India’s export of petroleum merchandise fell by over 12.7% to $36.4 billion in April-September 2024 as in comparison with $41.7 billion in April-September 2023, when it comes to quantity, exports soared 121% through the interval to 116.4 million tonnes as in comparison with 52.7 million tonnes in H1, FY24, in accordance with a commerce ministry information.
The federal government additionally scrapped the street and infrastructure cess (RIC) levied on export of petrol and diesel from Monday. Initially, the levy was ₹6 per litre on exports of each petrol and aviation turbine gasoline (ATF) and ₹13 a litre on diesel. The levy on domestically produced crude was ₹23,250 per tonne. The charges have been reviewed each fortnight based mostly on worldwide benchmarks.
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