Fuel price: What is windfall gain tax and how it affects fuel prices?
According to a CNBC report, the Indian government will once again slash windfall gain tax in the upcoming fortnightly review. Since the oil prices are in a relatively stable state, there would be no motive for slashing taxes from the corporations.
The windfall tax on crude oil is Rs 17,000 per tonne which was earlier Rs 17,750 per tonne. The export duty on diesel was also slashed from Rs 11 per litre to Rs 5 per litre in the second review. Besides, there is no export duty on petrol and aviation turbine fuel(ATF).
What is windfall gain tax?
A windfall gain tax is imposed by the government on a company. When a corporate gains from something that it can’t control or are responsible for, that financial gain is windfall profits.
