The central government has withdrawn all windfall tax on crude oil with immediate effect, according to a government notification.
This comes at a time when global crude oil prices rose after the group of oil-producing countries decided to cut output come May this year. The Organisation of the Petroleum Exporting Countries (OPEC) Plus oil producers announced further output cuts of around 1.16 million barrels per day. Taking into account huge margins being accumulated by the domestic crude producers due to rising global crude prices, the Centre had in July 2022 imposed a cess of Rs 23,250 per tonne on crude oil. Since then, the government from time to time had been reducing the windfall tax on crude oil.
A tax levied on an unforeseen or unexpectedly large profit is called a windfall tax. (ANI)
