Central Government has decided to levy windfall tax on the crude oil producers and taxes on importing gold, export duty on crude oil have also increased. As the crude oil per barrel prices have gone up to US$120, Government has decided to control the export and import of oil.
Domestic producers tend to export to different countries post production as Indian Rupee is trading at Rs.80 per one USD. This will create rush among the producers to increase exports and to keep up the demand, Indian companies will try to depend on imports too. Hence, windfall tax will make them vary about paying huge amounts to government as tax.
The Domestic producers have asked the Government to revise the tax rates at Rs.23,250/- per ton. Hence, Tarun Bajaj, Principal Revenue Secretary has announced that Government will revise the rates every day and windfall tax can be unlevied only after crude oil prices come down to US$40 or low.
Well, US has been trying to avoid recession and they are working towards bringing the prices under control. But Russia-Ukraine war, Libya crisis has not made it easy for them.