Windfall Tax: The federal government on Friday introduced a considerable hike within the windfall tax on crude oil and air turbine gas (ATF) oil, in response to an official notification.

Windfall acquire tax on crude oil has been elevated from Rs 1900/tonne to Rs 5050/tonne. On ATF, it has virtually doubled from Rs 3.5/Litre to Rs 6/Litre, the federal government notification learn.

With the hike in windfall tax, the extra export obligation on diesel has additionally been raised, nonetheless, no change in petrol costs. The extra export obligation on diesel is now hiked from Rs 5/litre to Rs 7.50 per liter, as per the notification.

Additionally Watch: Reliance Industries Q3 FY23 Outcomes Preview: What Is The Profit Of Discount In Windfall Tax?

The brand new charges will likely be relevant from February 4, 2023.

The federal government is aiming to gather Rs 25,000 crore from windfall tax in FY23, Income Secretary Sanjay Malhotra mentioned on Friday.

The federal government had imposed a windfall tax in July 2022 on exports of domestically produced crude oil and gas. It’s also known as windfall revenue tax. India is the most important client and importer of oil on the earth, and it has been shopping for crude from Russia since final 12 months at comparatively decrease costs.

Additionally Learn: Windfall tax reduce on crude, export taxes on aviation gas, diesel

Indian corporations have began growing their exports for revenue after Russia’s provide was affected internationally final 12 months. This benefited the Indian oil exploration and manufacturing corporations, on which the federal government determined to impose a windfall tax.

The windfall tax price is reviewed and revised each fortnightly, on a mean.

What’s Windfall Tax?

Windfall means sudden revenue or cash and the tax that’s levied on such revenue known as Windfall tax. The federal government imposes such tax on sure industries, solely when corporations are making a sudden earnings resulting from some exterior causes.