Oil ministry says windfall profit tax response to dynamic situation

The oil ministry on Tuesday said the levy of windfall profit tax was a response to a dynamic situation and its design provides for recalibration based on market inputs and feedback.

“Crude oil prices have witnessed extreme volatility in 2022. This has resulted in very high prices for end consumers at petrol pumps.

“Countries around the world have implemented various measures to mitigate the adverse impacts on consumers. ‘Windfall tax’ is one of the measures which helps in dealing with the situation,” the ministry said in a statement.

India first imposed windfall profit tax on July 1, joining a growing number of nations that tax super normal profits of energy companies.