The Ministry of Finance will review the effectiveness of the tax paid on the sale of crude oil and fuel

The Finance Ministry will review the effectiveness of the reduced tax on the export of petrol, diesel and Aviation Turbine Fuel (ATF) as global crude oil prices stabilize, sources said. The huge profits made by some oil refiners by exporting fuel without the cost of domestic goods has prompted the government to introduce export tax on petrol, diesel and ATF in July 2022.

The Finance Ministry will consider the interim tax and excise duty on this, sources said.

The Ministry of Petroleum and Natural Gas has already written to the Ministry of Finance in this regard, sources said.

The government in September reduced the duty on crude oil produced in the country to ’00’ per tonne.

The tax is levied in the form of Special Excise Duty (SAED) and is notified every two weeks based on the oil prices for two weeks.

The last such revision took place from August 31 when the windfall tax on crude petroleum was set at Rs 1,850 per tonne.

The SAED on the export of diesel, gasoline and jet fuel or ATF, has been kept ‘off’ since September 18.

India first introduced taxes on profits on July 1, 2022, joining a number of nations that tax profits above the norm for energy companies.

Sources also said that the Ministry of Petroleum and Natural Gas has written a letter to the Ministry of Finance to consider bringing natural gas under the Goods and Services Tax (GST) ambit.

It is for the GST Council headed by the Union Finance Minister to consider the proposal and take a call on this, the sources added.