Windfall gain tax levies may be reviewed soon

The government is likely to review windfall gains tax levies soon, people in the know of the matter told CNBC-TV18.

Sources said that fortnightly movement proposes for marginal increase in levies on domestically-produced crude and export of diesel.

OPEC's recent decision to cut production pulled up international prices, showing an average price of over $90 per barrel.

The revenue department will also soon take a final call based on inputs from the petroleum ministry, sources said, adding that the government is also assessing the proposal to include domestically-produced natural gas under windfall gains tax ambit.

Earlier this month, the government cut the windfall profit tax on locally-produced crude oil and diesel, in line with a fall in international rates, and scrapped the levy on the export of jet fuel with effect from October 2. At the sixth fortnightly review, the government reduced the tax on domestically-produced crude oil to Rs 8,000 per tonne from Rs 10,500 per tonne.

The levy on the export of diesel was reduced to Rs 5 per litre from Rs 10 per litre. The tax at the rate of Rs 5 a litre on Aviation Turbine Fuel (ATF) exports was scrapped with effect from October 2, according to a finance ministry notification.