Govt to review export, windfall tax every fortnight: Sitharaman

Finance Minister Nirmala Sitharaman on Friday said “phenomenal profits” made by some oil refiners on exporting fuel at the expense of domestic supplies had prompted the government to introduce an export tax on petrol, diesel and ATF.

The export levy as also the windfall tax imposed on record profits of domestic oil producers will be reviewed every fortnight to calibrate them if the need arises, she told reporters here.

She said the new taxes are aimed at improving the supply of petroleum products in the domestic market, as private producers were mainly focussing on exports.

The government on Friday slapped an export tax on petrol, diesel and jet fuel (ATF) and imposed a windfall tax on crude oil produced locally.

“Every 15 days, this will be assessed to see how things are working out,” the minister said.

Sitharaman said that currently, India is facing difficulty in getting crude oil from abroad at an affordable price.

Observing that at a time when oil prices are “unbridled” internationally and domestic exporters are making “phenomenal profits”, she said it is essential to ensure enough domestic supplies.