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India cuts wind tax if oil price drops by $40/barrel: Report

NEW DELHI: India will only withdraw income tax imposed last week on producers and refiners if global crude oil prices fall by as much as $40 per barrel from current levels, Revenue Minister Tarun Bajaj told Reuters on Monday.
Taxes on companies that have increased exports of products to gain higher profits abroad took effect on July 1, as the government moves to boost domestic supply and sales.
Taxes and some accompanying export restrictions will affect the earnings of companies such as Reliance IndustriesNayara Energy, partly owned by Russia’s Rosneft, Oil and Natural Gas Corp, Oil India Ltd and Vedanta Ltd.
“The tax will be reviewed every 15 days,” Bajaj said, adding that it would depend on international crude oil prices. “If Crude oil prices decrease, wind income will cease and wind taxes will also be eliminated. ”
The government believes such gains will cease when prices fall $40 from current levels, Bajaj said.
Brent oil futures fell on Monday to around $111.27 a barrel, as fears of a global recession weighed on the market even as supplies remained tight amid falling OPEC output, the situation. unrest in Libya and sanctions against Russia.
The price of US West Texas Intermediate crude oil futures was at $108.09 per barrel.
Bajaj did not provide any estimates of the revenue increase for the government from the wind tax move.

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