Question
Consider the following statements: I.
Government has cut windfall tax on locally produced crude oil and exports of aviation turbine fuel (ATF) and diesel. II. The windfall tax on crude has been reduced to Rs 1,500 per tonne from Rs 2,100 per tonne earlier. III. The government also cut export tax on ATF to Rs 3.5 per litre from Rs 4.5 per litre. Which of the above statement is/are not correct?Solution
The government has cut windfall tax on locally produced crude oil and exports of aviation turbine fuel (ATF) and diesel.The windfall tax on crude has been reduced to Rs 1,900 per tonne from Rs 2,100 per tonne earlier. The government also cut export tax on ATF to Rs 3.5 per litre from Rs 4.5 per liter. The export tax on diesel has been reduced to Rs 5 per litre from Rs 6.5 per litre earlier. The special additional excise duty on petrol continues to remain unchanged at ‘nil’. Learn Along: A windfall tax is a higher tax rate on profits that result from a sudden windfall gain to a particular company or industry, often as the result of a geo-political disturbance, war or natural disaster that creates unusual spikes in demand and/or interruptions to supply.
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