The windfall tax still remains zero on petroleum crude, ATF, diesel, petrol as the government did not make any changes till now on the notification issued on 16th May, where it was reduced from 4,100/tonne to zero.
A windfall tax, we know, is a higher tax levied by the government on specific industries when they experience unexpected and above average profits. Such taxes are levied by the government and changes on the amount of tax are made by the government. Such a change was made by the government, where they cut the windfall tax on petroleum crude from Rs 6,400 per tonne to Rs 4,100 per tonne which came into effect from 2nd May. However, the windfall tax on petrol, diesel and aviation turbine fuel has been left at zero. On May 16th, a notification was issued where the special additional excise duty on petroleum crude was reduced from Rs 4,100/tonne to zero.
Till now, no further changes have been made and the government has decided to continue with the zero windfall tax for the month of June. This same tax regime will be continued till the issuance of fresh notification by the government notifying new rates.
The next review is likely to happen around mid June.
