According to Finance Minister Nirmala Sitharaman, windfall taxes on petroleum products and crude are charged regularly after consultation with the industry. While addressing an event online, the minister said windfall tax rates and resettings are done with complete consultation with the industry, making it unfair to call them ad hoc.

"The very idea was implemented after taking the industry into full confidence," Sitharaman said at a function organised by Elara Capital, as reported by news agency PTI.

"When we suggested the idea, we had told the industry that the tax rate will be reviewed every 15 days and we have been doing that," Sitharaman said.

Regarding bond inclusion in global indices, the minister said many things have changed since the pandemic, particularly in inflows.

She explained that fund inflows have not been as expected, mainly due to the pandemic, adding, "however, I expect a logical conclusion to this sooner."

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Regarding the government's plans to increase the tax-to-GDP ratio, which is only about 10, she said it would take a lot of consultation and analysis to broaden the tax base. However, the growing number of income tax returns gives me some insight into its possibility.

"But we want to ensure that as and when it is done, it looks reasonable and tech-driven," Sitharaman said.

In the next 25 years of reforms and growth, she said by the time India celebrates the first centenary of independence. She further mentioned that India would have to reset lots of things so that the country could become a developed nation in 25 years.

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“The biggest tools for such a reset are digitisation, education and building more and more infrastructure so that our hinterland doesn't remain unconnected to the cities,” the Finance Minister said.

She also underlined the need for more caution and concerted efforts to sustain growth as the world faces many newer challenges even as it comes out of the pandemic.

The government recently hiked the windfall profit tax on the export of diesel and on jet fuel exports with effect from September 1, according to a finance ministry notification issued late Wednesday night. The government has also raised the levy on domestically-produced crude oil amid a hardening of global prices at the fourth fortnightly review.

(With inputs from PTI)

Also read: Windfall profit tax hiked on export of diesel, jet fuel

First Published:Sept 5, 2022 3:22 PM IST