Shares of ONGC and RIL advanced in trade today after the Central Government on Wednesday (20 July 2022) slashed the windfall tax on petrol, diesel, jet fuel and crude oil following a decline in international rates.
Shares of Oil and Natural Gas Corporation jumped 4.98% to Rs 133.80 while the scrip of Reliance Industries advanced 2.73% to Rs 2507.90.
Meanwhile, the S&P BSE Sensex advanced 1.52% to 55,598.97. The S&P BSE Oil & Gas index gained rose 1.24% to 18,461.84.
The government has reduced the windfall tax on diesel and aviation turbine fuel (ATF) by Rs 2 a litre and scrapped a Rs 6 per litre tax on export of petrol. The tax on ATF has now been cut to Rs 4 a litre from Rs 6 and on diesel to Rs 11 from Rs 13 per litre.
Further, the Rs 23,250 per tonne additional tax on crude oil produced domestically has been cut to Rs 17,000 per tonne.
On 1 July, the Ministry of Finance imposed a cess of Rs 23,250 per tonne (by way of special additional excise duty - SAED) on crude oil produced domestically. It also slapped a Rs 6 per litre tax on the export of petrol and jet fuel (ATF) and Rs 13 a litre on the export of diesel effective 1 July 2022.
With this, India joined a select league of nations globally that have taxed windfall gains accruing to oil companies from soaring energy prices.
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