Key Points
- Tarun Kapoor talks about the windfall tax’s current relevance.
- The Ministry of Petroleum has contacted the Finance Ministry regarding the tax.
- This tax was introduced in 2022 to tackle high profits from global crude prices.
- The tax has been lowered to zero per tonne as of September 18.
- The tax is checked every two weeks based on average oil prices.
Looma News
Advisor to Prime Minister Tarun Kapoor mentioned on Wednesday that the windfall tax on crude oil isn’t very important at the moment. Kapoor, who used to be the Oil Secretary, said that the Ministry of Petroleum and Natural Gas (MoPNG) has contacted the Finance Ministry about removing the tax.
He made these comments during the World Biogas Associations’ India Congress 2023, adding that the Finance Ministry will make the final decision on this issue.
The windfall tax was set up in 2022 to help reduce the unusually high profits of oil and gas companies due to rising global crude oil prices. Recently, the government cut the windfall tax on domestically produced crude oil to zero per tonne, starting September 18. This tax, known as Special Additional Excise Duty (SAED), is reviewed every two weeks based on the average oil prices over that time.
