The Indian government has announced a reduction in the windfall tax on crude oil, lowering it to ₹2,100 per tonne. This move is aimed at easing the burden on oil producers who have been facing high taxes on their profits. Additionally, the government has scrapped the windfall tax on diesel and aviation turbine fuel (ATF), providing relief to consumers and the aviation industry.
The reduction in windfall tax on crude oil is expected to benefit oil producers, who have been facing high taxes on their profits due to the surge in global oil prices. The government had introduced the windfall tax in July to tap into the profits of oil companies, but the reduction is a response to the decline in global oil prices.
The scrapping of the windfall tax on diesel and ATF is likely to bring down the prices of these fuels, providing relief to consumers and the aviation industry. Diesel prices have been high due to the windfall tax, affecting transportation costs and inflation. The removal of the tax on ATF will also benefit airlines, who have been facing high fuel costs.
The government’s move is seen as a response to the changing global oil price scenario and the need to balance the interests of oil producers, consumers, and the economy. The reduction and scrapping of windfall taxes are expected to have a positive impact on the economy, inflation, and the overall energy sector.