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Govt. slashes windfall tax on petroleum crude to Rs 4,600 per tonne, price to be effective from Aug 1
The government on July 31 slashed windfall tax on domestically produced crude oil to Rs 4,600 per tonne from Rs 7,000 per tonne. The tax is levied in the form of Special Additional Excise Duty (SAED).
The SAED on the export of diesel, petrol and jet fuel or ATF has been retained at nil. The new rates will be effective from August 1, an official notification said.
India first imposed windfall profit taxes on July 1, 2022, and joined a host of nations that tax supernormal profits of energy companies. The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.
From July 2022, India started taxing crude oil production and exports of gasoline, diesel and aviation fuel to regulate private refiners that wanted to sell fuel overseas instead of locally to gain from robust refining margins.
The government raised the windfall tax on petroleum crude to Rs 7,000 per metric tonne from Rs 6,000 per tonne on July 15. The new rates will be effective from July 16.
Earlier on July 1, the government has increased windfall tax on domestically-produced crude oil to Rs 6,000. This measure was introduced to control private refiners who preferred selling fuel internationally to capitalise on strong refining margins instead of supplying it domestically.
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