The government has lowered the windfall tax on petroleum crude to Rs. 4,600 per tonne with effect from 1st August 2024. It was slashed from the rate of Rs. 7,000 per tonne.

The government has lowered the windfall tax on petroleum crude to Rs. 4,600 per tonne with effect from 1st August 2024. It was slashed from the rate of Rs. 7,000 per tonne. A windfall tax is a one-time levy imposed by the government on companies that have earned unexpected profits due to extraordinary events, such as a sudden spike in global crude oil prices. On July 1, 2024, the finance ministry increased the windfall tax from Rs. 3,250 to Rs. 6,000. The government employs this mechanism to curb excessive gains in the industry. Since 2022, taxes have been imposed on petroleum crude, aviation fuel, diesel, and other products to regulate private refiners. This adjustment follows several recent changes in tax rates: on May 31, the tax was reduced from Rs. 5,700 to Rs. 5,200 per tonne; on May 16, it was reduced from Rs. 8,400 to Rs. 5,700 per tonne; and on April 30, the rate was lowered from Rs. 9,600 to Rs. 8,400 per tonne. However, from April 4 to April 30, 2024, there was a significant increase in the tax on petroleum crude, raising it from Rs. 6,800 to Rs. 9,600 per tonne, an increase of Rs. 2,800