The windfall profit tax on domestically produced crude oil was reduced by the federal government on Monday. According to the latest official information, the government has decreased this windfall tax from the prior rate of Rs. 6,400 per tonne to Rs. 4,100 per tonne.
Despite the reduction in the windfall profit tax, the Central Board of Indirect Taxes and Customs has continued to exempt petrol, diesel and aviation turbine fuel from export duties. These updated prices will take effect as of today, May 2, 2023, in accordance with the instructions.
The government's decision to reduce the windfall profit tax on domestically produced crude oil follows its recent notice that it will be reinstated. At the time, the government abolished the fuel export tariff and raised the price from zero to Rs 6,400 per tonne.
The windfall profit tax for the unregistered is reevaluated every two weeks depending on a number of variables, including the average oil price during the previous two weeks from the time of renewal.
The government imposes or revises the windfall tax based on these elements and issues notifications that are then applicable to relevant parties.