Markets
Energy

Centre’s windfall tax on oil refiners makes economic sense now, but will it make the future perfect?

Centre’s windfall tax on oil refiners makes economic sense now, but will it make the future perfect?
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An Essar Oil refinery near Jamnagar, Gujarat.

Synopsis

Oil companies’ gains due to high global crude-oil prices have attracted windfall taxes from the government. Not just India, many other countries have imposed such taxes. But experts are of the opinion that such taxes may stifle the much-needed investment in the country’s upstream sector. More importantly, when will this tax go away?

By &
8 mins read,
Eyes do light up when anyone comes across the thought of windfall. But on July 1, the government stole the wind behind oil refiners’ profits by asking them to pay taxes on them, namely, windfall taxes. Rise in fuel prices, which has propelled consumer inflation, has left the common man counting their coins even as oil companies continue to announce highest ever net profits. Though the government, on July 20, marginally reduced windfall tax on

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