The central government is considering abolishing the windfall profit tax on domestically produced crude oil. Regarding which the talks have intensified. In this matter, Prime Minister's advisor Tarun Kapoor said on Wednesday that global crude oil prices have declined rapidly since 2022. Therefore, there is no point in imposing windfall profit tax on crude oil now. He said that the Finance Ministry will consider it. Windfall profits tax was first imposed in the country in July 2022. At that time, crude oil prices were skyrocketing across the world.
Tax was imposed for the first time in 2022
Tarun Kapoor said that I think the Petroleum Ministry has already written a letter to the Finance Ministry to abolish the windfall profit tax. Now the decision has to be taken by the Finance Ministry. Let us tell you that on Wednesday, Brent crude became 1.5 percent cheaper in the global market at $ 74.90 per barrel.
Why was the tax imposed?
If we talk about the reason for the implementation of this tax, then on July 1, 2022, the Central Government implemented the windfall tax on crude oil produced in the country in response to the increase in global prices. The move was aimed at controlling the excessive profits of oil refineries that were exporting fuel at the expense of domestic supplies.
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