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Govt looks to offset revenue loss by introducing temporary tax on energy companies: Sources

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Govt looks to offset revenue loss by introducing temporary tax on energy companies: Sources

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The government is looking at additional revenue mobilisation measures to offset revenue loss, sources said, adding that it has plans to introduce temporary tax on domestic oil and producers. However, no decision has been taken yet.

The government is looking at additional revenue mobilisation measures to offset revenue loss because of the recent excise duty cuts, higher fertiliser subsidies and free ration, people in the know of the matter told CNBC-TV18.
The revenue department is planning to introduce temporary tax on domestic oil and gas producers, the sources said. However, no decision has been taken yet.
The revenue department is assessing the impact of the temporary tax “windfall” gains made by oil and gas producers due to the high prices, sources said.
Apart from windfall gain tax on oil and gas companies, other measures are also being considered, such as accelerating asset monetisation, tighter enforcement, the sources said.
The Finance Minister is yet to finalise the proposal in yet to take a decision, the sources added.
Last week, the Finance Minister in a series of tweets said the entire burden of the two excise duty cuts — in November 2021 and in May 2022 — is being borne by the Centre.
On May 21, the Union government had decided to reduce the central excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre.
On Tuesday, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri had also hinted that the Centre would announce more relief measures in view of rising fuel costs.
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