The windfall tax on local crude oil output is being reviewed by the Union finance ministry, according to Tarun Kapoor, an advisor to Prime Minister Narendra Modi's office.
Kapoor stated that the windfall tax has become less relevant due to a significant decrease in global oil prices compared to 2022, when the tax was first implemented.
The finance ministry will consider this matter, and it seems that the petroleum ministry has already expressed its position on the issue.
Recently, the government reduced the windfall tax on domestically produced crude oil by 11.9%, lowering it from Rs 2,100 per tonne to Rs 1,850 per tonne, effective August 31.