India Cuts Windfall Tax on Petrol, Diesel and ATF Exports
Listen to the story
The Indian government has reduced the windfall tax on exports of petrol, diesel and ATF.
The windfall tax on petrol exports has now been cut to zero.
The tax on diesel exports has been reduced by 1.5 rupees.
The tax on ATF, or aviation turbine fuel, has been cut by 2.50 rupees.
ATF is the fuel used to power airplanes.
These new tax rates became effective from today.
A windfall tax is a special tax placed on companies that earn unusually large profits.
In this case, the tax applies to companies that export petrol, diesel and ATF from India.
Export means sending goods, like fuel, to be sold in other countries.
The government has been adjusting this tax regularly based on global oil prices and company profits.
The tax was first introduced to capture extra profits earned by fuel companies during periods of high international prices.
By reducing the tax now, the government is offering some relief to fuel exporters.
This move could affect the earnings of major oil and gas companies.
It may also influence how much fuel these companies choose to export versus sell domestically.
The government has not given further details about future tax reviews in the report.
This is part of a broader pattern of periodic changes to windfall tax rates in India.
Officials adjust these rates depending on market conditions and crude oil prices worldwide.
The changes are officially announced and apply immediately.
Vocabulary10 words
- windfall tax
- extra tax on unusually large, unexpected profit
- ATF
- fuel used to power airplanes
- effective
- starting to apply or work
- export
- sending goods to sell in other countries
- relief
- something that makes a burden lighter
- crude oil
- unprocessed oil taken from the ground
- domestically
- within one's own country
- profit
- money made after costs are paid
- official
- approved by the government
- adjust
- to change slightly to fit new conditions
Quiz
Answer key
1. 1.5 rupees 2. Unusually large profits 3. True
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
The Indian government has reduced the windfall _____ on exports of petrol, diesel and ATF.
The windfall tax on petrol exports has now been cut to _____.
The tax on diesel exports has been reduced by _____ rupees.
The tax on ATF, or aviation turbine fuel, has been cut by _____ rupees.
These new tax rates became _____ from today.
A windfall tax is a special tax placed on companies that earn unusually large _____.
Export means sending goods, like fuel, to be sold in other _____.
The government has been adjusting this tax regularly based on global oil prices and company _____.
By reducing the tax now, the government is offering some _____ to fuel exporters.
This move could affect the _____ of major oil and gas companies.