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India Removes Windfall Profit Tax On Crude Oil And Fuel Exports To Boost Energy Sector
The Centre on Monday eliminated the windfall profit tax that had been in place for 30 months on domestically-produced crude oil and fuel exports. Minister of State for finance Pankaj Chaudhary tabled a notification in the Rajya Sabha about the decision of removing tax on crude oil produced by companies like ONGC and fuel exports by firms such as Reliance Industries Ltd
The notification cancelled the June 30, 2022 order and removed the special additional excise duty (SAED) on crude oil production and fuel exports, including aviation turbine fuel (ATF), diesel and petrol. Additionally, the government withdrew the road and infrastructure cess (RIC) previously imposed on petrol and diesel exports.
On July 1, 2022, India implemented windfall profit taxes, joining other nations in taxing extraordinary profits of energy companies. Initially, export duties were set at Rs 6 per litre for petrol and ATF, and Rs 13 per litre for diesel. A domestic crude production tax of Rs 23,250 per tonne was also established.
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