The Indian government has cut the windfall tax on petroleum crude to zero, in a move to encourage oil exploration and production activities. The windfall tax, which was introduced in 2007, was imposed on oil producers when crude oil prices rose above a certain threshold. The tax had been set at 20 percent of the value of production.
The move is expected to boost the exploration and production activities of the oil sector, as well as the economy as a whole.
The government had already reduced the windfall tax from 20 percent to 10 percent last year. The new move is expected to further spur investments in the oil sector, encouraging more exploration and production activities.
The reduction of the windfall tax is part of the government’s efforts to make India self-reliant in meeting its energy needs. The government has also taken steps to make the country’s oil and gas sector more attractive for investors.
The move is also expected to benefit the oil and gas companies, as they will now be able to keep more of their profits. This could lead to increased investments in the sector, leading to more jobs and economic growth.