Export duty on steel and petro products to hit corporate earnings in FY23

Current Context: A special tax on the export of steel, iron ore, and petroleum products, and a windfall profit tax on crude oil producers are likely to hit the overall corporate earnings.

• Mining & metals and crude oil producers reported a record net profit of Rs 3.05 trillion in FY22.
• Besides, it accounted for nearly 32% of the overall corporate earnings in FY22.
• These mining and metal producers were the biggest gainers in FY22 with the sector’s combined net profit rising 132.5%.
• As per the report, the unexpected jump in earnings in the metals & crude oil sector was largely driven by higher product prices and margins.
• Apart from that petroleum products, such as diesel, gasoline, and aviation turbine fuel (ATF), were India's top goods exports in FY22.
• But this latest tax will affect the steel and petroleum products earnings in FY23.

Question:

Q.1 Which of the following sectors will get most affected due to special tax from the government?
a. Textile Sectors
b. Mining & Petroleum
c. Export and Import
d. Transport sector