Foreign oil majors flag windfall tax concerns; govt seeks $52-bn investment

India is the world's third-biggest oil importer and consumer and meets almost 85 per cent of its oil requirements from overseas

At least two major foreign oil majors have cited India’s windfall tax regime as a challenge to their plans of investing in the oil exploration and production sector during discussions with the government, said senior industry and government sources.

Post-contract changes in taxation rates have been a major worry for foreign oil-producing companies, even as they draw up plans to enter India’s promising market, they told Business Standard.

“The windfall tax is levied on domestically produced crude and the export of diesel and aviation turbine fuel (ATF), covering the entirety of the oil business. The rate is reviewed every fortnight