Upstream oil exploration and production companies ONGC and Oil India Ltd will benefit as they will have to pay lower taxes on their crude oil.
Windfall tax cuts have been announced in view of the fall in crude oil prices in the market, which means that upstream oil companies are no longer earning as much as they used to.
Due to the sharp rise in oil prices at that time, the government had on April 16 increased the unprecedented tax on petroleum crude oil from Rs 6,800 to Rs 9,600 per metric tonne.
The windfall tax on crude oil was imposed in July last year as the sudden rise in prices boosted the earnings of oil companies and the government wants to use a part of this profit to reduce the fiscal deficit.
The windfall tax was extended to exports of petrol, diesel and aviation fuel after private refineries started making bigger profits from overseas markets rather than selling the fuel in the domestic market.
The government has left the windfall tax on these fuels unchanged for the current period.
Windfall tax cuts have been announced in view of the fall in crude oil prices in the market, which means that upstream oil companies are no longer earning as much as they used to.
Due to the sharp rise in oil prices at that time, the government had on April 16 increased the unprecedented tax on petroleum crude oil from Rs 6,800 to Rs 9,600 per metric tonne.
The windfall tax on crude oil was imposed in July last year as the sudden rise in prices boosted the earnings of oil companies and the government wants to use a part of this profit to reduce the fiscal deficit.
The windfall tax was extended to exports of petrol, diesel and aviation fuel after private refineries started making bigger profits from overseas markets rather than selling the fuel in the domestic market.
The government has left the windfall tax on these fuels unchanged for the current period.
