Windfall Tax

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been cut to Rs 4,350 per tonne from Rs 5,050 per tonne, the order dated February 15 said.

The government has also reduced the tax on export of diesel to Rs 5 per litre, from Rs 6.5 and the same on overseas shipments of ATF to Rs 3.5 a litre, from Rs 4.5 a litre.

Tax rates were cut at the last fortnightly review on December 16, following a decline in global crude oil prices. International oil prices have since then firmed up, necessitating the raising of windfall tax.

The centre cut its windfall tax on locally produced crude oil and aviation turbine fuel (ATF) and reduced the export tax on diesel.

The tax rates are revised every fortnight based on prevailing international rates. The levy on petrol export has since been abolished.

The government on Wednesday hiked windfall tax on domestically produced crude oil while reducing the rate on export of diesel.

Oil and Natural Gas Corporation (ONGC) reported 30 per cent fall in net profit for September quarter.

Finance Minister Nirmala Sitharaman on Monday defended the windfall tax on domestically produced crude oil and additional tax on exports of refined petroleum products, saying the levy has been imposed in full consultation with the industry.

Shares of Reliance Industries fell nearly 3 per cent on Thursday after the government raised the tax on export of diesel and jet fuel (ATF) and hiked the windfall profit levy on domestically-produced crude oil.

The just-introduced tax on windfall energy profits of oil refiners like Reliance Industries is not only levied on the diesel they export but also on the supplies they make to fuel retailers within India, sources said.

Shares of firms related to oil exploration and refineries were in heavy demand on Wednesday, with Reliance Industries and ONGC rallying after the government slashed windfall tax on petrol, diesel, jet fuel and crude oil.

India has cut a windfall tax on diesel and aviation fuel shipments by 2 rupees a liter, according to a government notification.

Changes in import duty and a windfall tax on fuel exports will offset duty cuts on fuels and increase overall tax collection over the budget target this fiscal to Rs 20.70 lakh crore, per a report.

A massive crash in refining margins of diesel, petrol and ATF coinciding with a cool-off in crude oil prices from their peaks in June has diminished the super-profits of refiners, a report said on Wednesday.

Reliance shares have crashed but is the impact of new government taxes really that bad or should savvy investors use this opportunity to buy shares?

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been cut to Rs 4,350 per tonne from Rs 5,050 per tonne, the order dated February 15 said.

The government has also reduced the tax on export of diesel to Rs 5 per litre, from Rs 6.5 and the same on overseas shipments of ATF to Rs 3.5 a litre, from Rs 4.5 a litre.

Tax rates were cut at the last fortnightly review on December 16, following a decline in global crude oil prices. International oil prices have since then firmed up, necessitating the raising of windfall tax.

The centre cut its windfall tax on locally produced crude oil and aviation turbine fuel (ATF) and reduced the export tax on diesel.

The tax rates are revised every fortnight based on prevailing international rates. The levy on petrol export has since been abolished.

The government on Wednesday hiked windfall tax on domestically produced crude oil while reducing the rate on export of diesel.

Oil and Natural Gas Corporation (ONGC) reported 30 per cent fall in net profit for September quarter.

Finance Minister Nirmala Sitharaman on Monday defended the windfall tax on domestically produced crude oil and additional tax on exports of refined petroleum products, saying the levy has been imposed in full consultation with the industry.

Shares of Reliance Industries fell nearly 3 per cent on Thursday after the government raised the tax on export of diesel and jet fuel (ATF) and hiked the windfall profit levy on domestically-produced crude oil.

The just-introduced tax on windfall energy profits of oil refiners like Reliance Industries is not only levied on the diesel they export but also on the supplies they make to fuel retailers within India, sources said.

Shares of firms related to oil exploration and refineries were in heavy demand on Wednesday, with Reliance Industries and ONGC rallying after the government slashed windfall tax on petrol, diesel, jet fuel and crude oil.

India has cut a windfall tax on diesel and aviation fuel shipments by 2 rupees a liter, according to a government notification.

Changes in import duty and a windfall tax on fuel exports will offset duty cuts on fuels and increase overall tax collection over the budget target this fiscal to Rs 20.70 lakh crore, per a report.

A massive crash in refining margins of diesel, petrol and ATF coinciding with a cool-off in crude oil prices from their peaks in June has diminished the super-profits of refiners, a report said on Wednesday.

Reliance shares have crashed but is the impact of new government taxes really that bad or should savvy investors use this opportunity to buy shares?