Sources said the Treasury will consider the effectiveness of windfall taxes on gasoline, diesel and aviation turbine fuel (ATF) exports as global oil prices stabilize. The government is set to introduce an export tax on petrol, diesel and ATF in July 2022 after some oil refiners made huge profits by exporting fuel at the expense of domestic supplies.
Officials said the Ministry of Finance will review the windfall tax and the taxes mobilized from it.
Officials said the Ministry of Petroleum and Natural Gas has already written to the Ministry of Finance in this regard.
In September, the government lowered the per-ton windfall tax on domestically produced crude oil to zero.
This tax is levied in the form of Special Additional Excise Duty (SAED) and is notified on a fortnightly basis based on the two-week average oil price.
The last such amendment came into effect on August 31, setting a windfall tax on crude oil at Rs 1,850 per tonne.
The SAED for exports of diesel, gasoline, jet fuel or ATF remains at ‘zero’ from 18 September.
India will impose a windfall profits tax for the first time on July 1, 2022, joining a number of countries that tax energy companies’ extraordinary profits.
Sources also said the Ministry of Petroleum and Natural Gas has written a letter to the Finance Ministry considering bringing natural gas under the Goods and Services Tax (GST).
It is the GST Council headed by the Union Finance Minister that will consider the proposal and consult on it, the official added.
