Windfall tax to generate nearly Rs 94,800 cr for govt, says Moody’s
The windfall taxes on domestic crude oil production and fuel exports will generate close to USD 12 billion (Rs 94,800 crore) for the government in the remainder of the current fiscal while trimming profits of firms such as Reliance Industries Ltd and ONGC, Moody’s Investors Service said Tuesday.
On July 1, the government imposed windfall gain taxes on the export of petrol, diesel and aviation turbine fuel (ATF), and on the domestic production of crude oil. It has also mandated exporters to meet the requirements of the domestic market first.
“The tax increase will reduce the profits of Indian crude producers and oil exporters like Reliance Industries Limited (RIL) and Oil and Natural Gas Corporation Ltd (ONGC),” Moody’s said in its comments on the new taxes.
