Govt cuts windfall tax on petroleum crude to Rs 1,700 per tonne
Government of India on Monday slashed the windfall tax on petroleum crude to Rs 1,700 a tonne from 2,300 rupees a tonne, according to a government notification. The cut will be effective from Jan.
16, the order said.
The tax, levied in the form of Special Additional Excise Duty or SAED, on domestically produced crude oil was sharply increased by the government on Jan 2, 2024 to Rs 2,300 per tonne from Rs 1,300 a tonne.
India first imposed windfall profit taxes on July 1, 2022, joining a growing number of nations that tax supernormal profits of energy companies. At that time, export duties of Rs 6 per litre (USD 12 per barrel) each were levied on petrol and ATF and Rs 13 a litre ($26 a barrel) on diesel.
The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.
A windfall tax is levied on domestic crude oil if rates of the global benchmark rise above USD 75 per barrel.
