CLNA report has suggested to Indian Government at some point they have to think about removing Windfall tax. While they have a review meeting scheduled next week, the report opined that at least in near future, if not immediately, Government has to re-consider Windfall taxing system.
We have reported earlier that Indian Government has imposed Windfall tax on petroleum and crude oil producers in India as they are looking towards export business and profits they can acquire from it. Government has suggested that the companies have been making profits on the exports in International market.
CLNA in it’s latest report agreed that the companies have made profits amounts to 55-60 USD per barrel but after the taxes have been imposed the profits have come down 30 – 35 USD per barrel and they will continue to come down. The chances of these becoming losses is also there.
Hence, CLNA report suggested that the Government should look at removing Windfall tax or considerably decreasing it phase wise in coming months.