On November 16, the Union government reduced the windfall tax on crude petroleum from Rs 9,800 to Rs 6,300 per tonne. According to the statement, the special additional excise tax (SAED) on fuel has been reduced by half to Rs 1 from Rs 2 per liter.
Furthermore, the windfall tax on aviation turbine fuel and gasoline remains $0. The judgment was made at the Windfall Gains Tax weekly review.
The government’s statement about lowering the windfall tax comes as global crude oil prices remain volatile. Concerns about Asia’s low energy consumption were answered by signs of increased supply from the United States.
The government raised the windfall tax on petroleum oil to Rs 9,800/tonne from Rs 9,050/tonne in the previous weekly review on October 31, with effect from November 1.
On July 1, last year, India became the first country to levy windfall profit taxes on energy corporations, joining a growing list of countries that do so. At the time, export tariffs on petrol and ATF were Rs 6 per liter ($12 per barrel), while diesel was Rs 13 per liter ($26 per barrel).
A windfall profit tax of Rs 23,250 per tonne ($40 per barrel) was also charged on crude oil produced by businesses like as Oil and Natural Gas Corporation (ONGC).
The tax rates are revised every two weeks depending on the average of the preceding two weeks’ oil prices.
If the global benchmark rises over $75 per barrel, a windfall tax is imposed on local crude oil. Diesel, ATF, and gasoline exports are subject to the charge if product cracks (or margins) exceed $20 per barrel.
The difference between crude oil (raw material) and finished petroleum products is represented by product cracks or margins.
Meanwhile, oil prices dipped on November 16, extending losses from the previous day, as signs of increased production from the United States clashed with concerns over China’s weak energy consumption.
Because precious metals are taxed in most nations owing to their great economic worth, bullion must be taxed.
The sale of gold jewelry, bullion, gold ETFs, and gold mutual funds is taxed in India under the category of “Capital gains.” If you sell the gold within three years after purchasing it, the profit is dubbed short-term capital gain (STCG).