The windfall taxes imposed in July on domestic crude and export of petroleum products will likely generate additional revenues of around Rs 40,000 crore in the current fiscal, a senior official told FE, adding that nearly half of these taxes will likely be paid by private sector companies.
If global crude oil prices decline to $70-75/bbl, then the windfall taxes will be scrapped, the official said, but added that unless this price range is established, the levies may continue subject to fortnight adjustments.
These one-off levies meant to extract a share for the government from the “windfall profits” made by oil sector firms due to elevated global crude prices have undergone seven fortnightly revisions since.
