Windfall Taxes Contributes To 35,000 Cr In FY23

Windfall taxes on petroleum products in FY 2023 contributed to nearly Rs 35,000 crore of the Centre’s collection, according to a media report on Thursday.

It added the collection will further continue with the special provision and act as a safeguard against abnormal price movement in FY 2024.

Considering the sharp fall in global crude prices, not much revenue is expected from this impost. As the taxes move depending on the crude prices and the crack spread (refining margin), the reports stated.

The report further claims the current windfall taxes on domestic crude and export of petrol, diesel and jet fuel stand nil. Underlining the crude prices and refining margins moderated level with no abnormal profits.

However, it said, the levy won’t be withdrawn as the Centre decides to retain it against the abnormal profits when prices rise.

Meanwhile, the windfall taxes on crude were zeroed as on 15 May 2023 after Indian basket crude prices fell to below USD 75 per barrel.