Cut in windfall tax on crude oil:

 Windfall Tax Windfall tax on crude oil has been reduced by the government from Rs 7100 per tonne to Rs 6700 per tonne.  Windfall tax is reviewed by the government every 15 days.  The windfall tax was first imposed on oil companies on July 1, 2022 due to a sudden increase in crude oil prices.

Windfall Tax on Crude Oil: Windfall tax on crude oil has been reduced by the Government of India to Rs 6,700 per tonne.  Earlier it was Rs 7,100 per tonne.  Apart from this, export duty on diesel has been increased from Rs 5.50 per liter to Rs 6 per liter.

Apart from this, export duty on Aviation Turbine Fuel (ATF) i.e. jet fuel has been increased from Rs 2 per liter to Rs 4 per liter.  The new tax rates have come into effect from September 2.

What will be its effect?

 Windfall tax is reviewed by the government every 15 days.  Windfall tax was first imposed by the government on oil companies on July 1, 2022 due to the sudden increase in crude oil prices.

It is charged on the production of ATF and domestic crude oil along with the exported petrol-diesel.  It has no effect on the price of petrol and diesel at the domestic level.  However, it has an impact on crude oil producing companies like ONGC and petrol-diesel exporting company Reliance Industries etc.

How much windfall tax did the government impose for the first time?

 Windfall tax was imposed by the government for the first time on July 1 last year.  At that time, export duty of Rs 6 per liter was imposed on exported petrol and ATF and Rs 13 per liter on diesel.

 price of crude oil

 Crude oil remains around $88 per barrel.  A rise in prices is being seen due to continuous cuts in crude oil production by OPEC countries.