Windfall taxes on oil firms to fetch Rs 40,000 cr in FY23
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.
