• India continues with May 16 windfall tax notification as prices haven’t changed much

    Government has decided to continue with the May 16 windfall tax rates, as there hasn’t been much change in prices since then and now , sources tell CNBCTV-18. “Since there is not much change in prices, the earlier notification continues. It has not been withdrawn”, sources tell CNBCTV-18.

    The May 16 windfall tax notification had reduced the special additional excise duty on petroleum crude to nil from Rs 4,100/tonne. While SAED on diesel, petrol and ATF had continued at nil. This nil windfall tax regime will now continue till government notifies new rates.

    “We issue a notification only if there is a change,” a source told CNBCTV-18.

    The government has kept $75 as the trigger for windfall tax levy, below which the tax is nil. India’s crude oil basket has been consistently averaging below $75/bbl. It averaged $74.98 a barrel in May and so far in June it has further fallen to below $73/bbl . Given the present scenario it might just be possible there will be a zero windfall tax, unless crude oil prices make a comeback.

    The government reviews windfall tax levies every fortnight and it is likely the next review will happen around mid June.

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