Govt slashes windfall tax on crude petroleum

The tax is levied in the form of Special Additional Excise Duty SAED.According to an official notification, SAED on export of diesel, petrol, and jet fuel or ATF, has been retained at nil. The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

The government has hiked windfall tax on domestically produced crude oil to Rs 3,200 per tonne from Rs 1,700 per tonne with effect from Saturday. The tax is levied in the form of Special Additional Excise Duty (SAED).

According to an official notification, SAED on export of diesel, petrol, and jet fuel or ATF, has been retained at nil. The new rates are effective from February 3.

India first imposed windfall profit taxes on July 1, 2022, joining 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.