According to a notification issued by the Finance Ministry, the government has decided to levy tax on the export of petrol and ATF at the rate of Rs 6 per liter and on the export of diesel at the rate of Rs 13 per liter. The new rates have come into effect from July 1.
Apart from this, tax has been imposed on domestically produced crude oil at the rate of Rs 23,250 per tonne. Last year, a total of 29 million tonnes of crude oil was produced domestically. Accordingly, the government is likely to get a revenue of Rs 66,000 crore.
The finance ministry said in a statement that the rapid rise in crude oil prices in recent months has benefited companies that sell oil to domestic refineries at international prices. Due to this, the domestic producers of crude oil are getting windfall profits. In view of this, a cess of Rs 23,250 per tonne has been imposed on crude oil.
However, small producers producing less than 20 lakh barrels in the last financial year will be exempted from this new cess.
Sitharaman said on this decision, “We have no objection about profit. But if oil is not available domestically and extravagant profit is being made by exporting it, then our own citizens also have some share.” That is why we have taken this bilateral approach.”
“This is not to discourage imports and certainly not against profit making. But such steps are needed in exceptional times,” he said.
One of the reasons behind the decision to impose tax on exports of crude oil, petrol, diesel and ATF has been that refineries like Reliance Industries and Rosneft-backed Naira Energy have been making huge profits from exports of fuel to Europe and the US after the Russo-Ukraine war. She was
The government wants to increase domestic availability by taxing petroleum exports. After the new tax, petroleum producers will have to pay about 60 percent of the oil price as tax, including oil industry development cess and royalty.
Windfall gains are taxed when companies have windfall gains due to extremely favorable market conditions. This tax is collected from companies only once.
Along with this, the government has also said that oil companies exporting petrol will have to sell 50 percent of the foreign sales in the domestic market in the current financial year. For diesel, this limit has been kept at 30 percent of exports.
Revenue Secretary Tarun Bajaj said that export tax would also be applicable on refining companies located in special economic zones. However, export restrictions will not apply to companies located in SEZs.
One of the objectives of levying export tax is to improve domestic supply at petrol pumps as states like Madhya Pradesh, Rajasthan and Gujarat are facing shortage of fuel and private refineries are giving priority to export of fuel rather than selling it locally. Huh.
Without naming any company, the ministry said, “Companies export these products at a price comparable to the global level, which is very high. Due to huge gains from exports, it is seen that some companies are not supplying at pumps in the domestic market.
It further said, “These steps will not have any adverse impact on the domestic retail prices of diesel and petrol. Domestic retail prices will remain unchanged. Along with this, domestic availability of petroleum products will also be ensured by these measures.
Source: navbharattimes.indiatimes.com
: Language Inputs
This post is sourced from newspapers, magazines and third-party websites. For more information please check NewsDay Express Disclaimer.