Windfall tax: Frequent changes create uncertainty for Indian oil producers

Experts say move is justified but government should clarify how proceeds will be utilised

The Centre on Tuesday revised the windfall tax on oil companies for the second time since its imposition a month back. The frequent revision lends uncertainty to these companies, particularly domestic producers. However, experts have backed the move given the very nature of windfall tax and the volatility of global crude prices.

They said, however, that the government should bring in clarity as to how the receipts will be utilised and follow the UK’s example of providing discounted bills to low-income groups.

The government had imposed windfall tax on domestic production of crude at Rs 23,250 a tonne and on