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 It has not been withdrawn”, sources tell CNBCTV-18.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.Share This