The Modi government has issued a notification to cut windfall tax on petrol, diesel, jet fuel, crude oil due to reduction in international prices. According to the government notification, the Modi government has reduced the rate of diesel and aviation fuel shipments by Rs 2 per liter. Fully exempted Rs 6 per liter on gasoline exports. It also cut tax on domestically produced crude by about 27% to Rs 17,000 per tonne. Bloomberg News first reported on Thursday that the government is considering reducing taxes.

What is windfall tax

Windfall tax is levied on companies that benefit from certain circumstances. After Russia's attack on Ukraine, the price of crude oil at the international level increased significantly. Oil companies had benefited a lot from this, but due to fears of recession in the world, crude oil has come down below $ 100 per barrel recently. Because of this, the government has cut windfall tax. Now companies will have to pay an additional tax of Rs 11 for export of diesel and ATF. At the same time, the tax of six rupees per liter on the export of petrol has been completely abolished.