The government has imposed a tax on domestic production of crude at a cost of Rs. 5,000 crore will be recovered

New Delhi, Dt

The central government has imposed windfall tax and export cess on crude oil sales within six hours of releasing it from its control. In addition, the central government on Friday imposed a tax on petrol and diesel exports, with some private companies making "extraordinary profits" from their exports abroad in terms of domestic supply of petrol and diesel. With this, the government has decided to increase the price of locally produced crude oil by Rs. An additional windfall tax of Rs 2,50 has been levied. Considering last year's production of 25 million tonnes of crude at the local level, the government has to pay Rs. 4,000 crore revenue.

The government has set a target of Rs. 3 and Rs. Per liter on diesel exports. 18 export tax has been imposed, the implementation of which has started from 1st July. Considering the trend of export of 3 lakh tonnes of diesel and 3 lakh tonnes of petrol in the first two months of the financial year starting April 203 for the rest of the year, cess on crude oil production and petrol-diesel exports has led the government to reduce excise duty on petrol and diesel. Rs. The loss of Rs 1 lakh crore is expected to be offset.

The government exports petrol and diesel to private companies like Reliance Industries and Rosneft controlled Naira Energy to stop them from exporting to foreign markets instead of supplying them in the domestic market. Imposing a tax on exports means that the government wants to reduce exports of petrol, ATF and diesel. It aims to increase supply at petrol pumps in the domestic market. Currently private refineries prefer to export rather than sell fuel locally. Marketing companies are making huge losses at a time when petrol-diesel retail prices are low locally in the face of high international crude oil prices.

The country's finance minister Nirmala Sitaram has announced a fortnightly review of new taxes on crude oil, ATF and diesel in line with international prices. This is an extraordinary period now when crude prices are rising uncontrollably globally. "We do not want to stop exports in any way but the availability of various items in the domestic market should also increase," the finance minister said. If crude oil is not available and is being exported with huge profits, then a part of it must also be for the locals, he added.

The tax that the government levies when companies make 'extraordinary profits' due to favorable market conditions without any special investment or increase in efficiency or innovation is called windfall tax. In the March quarter, ONGC posted Rs. 1,10,8 crore on income of Rs. The company had posted a net profit of Rs 20,606 crore in the last fiscal. It had made a net profit of Rs 3,6.51 crore. Vedanta’s corn oil and gas also made huge profits. Britain recently raised ૨૫ 4.5 billion by levying a 5 per cent tax on "extraordinary profits" from North Sea Oil.

Private companies will have to pay more taxes

Petrol-diesel and jet fuel (six) are exported to India by big companies like Reliance Industries Ltd. This means that the biggest blow of the government's decision will fall on giants like Reliance, ONGC, Vedanta and they will now have to pay more taxes. Government-owned ONGC, Oil India Limited and Vedanta Limited earn bumper from tax collection on crude oil. Out of the local 3 million tonnes of crude oil production, the government has to spend Rs. 2.5 crore.