Incremental revenues from windfall tax overestimated: Govt officials

Government officials have termed the Rs.948 billion gains from windfall tax estimated by Moody’s Investors Service an overestimation, as per a report in Business Standard. They are of the view that the Rs.948 billion estimate does not take into account the consequent revenue loss to the Centre in the form of corporation tax post introduction of this windfall tax. On 1 July 2022, the government had imposed windfall tax on domestic production of crude at Rs.23,250 per tonne and on the export of petrol, diesel, and aviation turbine fuel (ATF) at the rate of Rs.6, Rs.13 and Rs 10 per litre, respectively. This was expected to yield Rs.948 billion as per Moody’s. According to officials, the government would have earned less than Rs.480 billion during July 2022-March 2023 if the windfall tax rates remained constant. On 20 July 2022, the Centre reduced the windfall tax on diesel and aviation fuel shipments by Rs.2 per litre and scrapped the Rs.6 per litre levy on gasoline exports completely. The officials further stated that now since the rates have been reduced, the government will get less revenue. Although, it is difficult to determine any exact figure as things will change based on oil price movement, they added.

References
1. https://www.business-standard.com/article/economy-policy/rs-94-800-cr-gains-from-windfall-tax-an-overestimation-govt-sources-122080400022_1.html
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.7 +0.7
Consumer Sentiments Index
Base September-December 2015
71.1 -0.5
Consumer Expectations Index
Base September-December 2015
69.7 -0.8
Current Economic Conditions Index
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73.3 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Sep 21 Dec 21 Mar 22 Jun 22
New projects 3.39 3.94 7.78 4.23
Completed projects 1.28 2.76 1.26 1.07
Stalled projects 0.28 0.08 0.28 0.25
Revived projects 0.39 1.98 0.32 0.28
Implementation stalled projects 0.26 0.65 0.09 0.08
Updated on: 19 Aug 2022 8:28PM
Quarterly Financials of Listed Companies
(% change) Sep 21 Dec 21 Mar 22 Jun 22
All listed Companies
 Income 27.5 23.4 20.9 40.6
 Expenses 26.7 21.3 19.9 42.0
 Net profit 55.8 35.4 31.1 20.8
 PAT margin (%) 9.6 9.0 9.0 7.4
 Count of Cos. 4,696 4,742 4,615 4,494
Non-financial Companies
 Income 35.6 29.1 24.9 50.7
 Expenses 35.9 28.7 25.7 53.9
 Net profit 59.4 19.1 11.3 7.8
 PAT margin (%) 8.8 7.5 7.8 6.0
 Net fixed assets 4.9 2.1
 Current assets 10.9 15.2
 Current liabilities 0.8 11.7
 Borrowings 12.2 3.6
 Reserves & surplus 12.4 11.4
 Count of Cos. 3,384 3,428 3,347 3,282
Numbers are net of P&E
Updated on: 19 Aug 2022 8:28PM
Annual Financials of All Companies
(% change) FY20 FY21 FY22
All Companies
 Income 0.6 -1.0 23.3
 Expenses 0.4 -3.2 21.6
 Net profit -5.8 73.3 56.0
 PAT margin (%) 2.0 4.4 9.8
 Assets 9.0 9.9 10.4
 Net worth 4.8 11.7 13.2
 RONW (%) 3.4 6.8 13.8
 Count of Cos. 32,624 30,686 2,465
Non-financial Companies
 Income -1.1 -2.0 31.4
 Expenses -0.9 -4.1 30.9
 Net profit -22.0 64.3 53.5
 PAT margin (%) 2.2 4.0 8.9
 Net fixed assets 11.2 2.2 4.3
 Net worth 2.1 10.7 14.0
 RONW (%) 4.6 7.8 17.2
 Debt / Equity (times) 1.2 1.0 0.6
 Interest cover (times) 1.9 2.4 6.5
 Net working capital cycle (days) 82 86 51
 Count of Cos. 25,818 24,102 1,800
Numbers are net of P&E
Updated on: 12 Aug 2022 10:17AM