Government Cuts Windfall Tax on Domestic Crude Oil

The government reduced the windfall tax on domestically produced crude oil from Rs 7,000 to Rs 4,600 per tonne. The Special Additional Excise Duty (SAED) on diesel, petrol, and jet fuel exports remains nil. Effective August 1, this move follows the first imposition of such taxes on July 1, 2022, with fortnightly reviews.

The government on Wednesday slashed the windfall tax on domestically produced crude oil, reducing it to Rs 4,600 per tonne from the previous Rs 7,000 per tonne.

This tax is levied in the form of Special Additional Excise Duty (SAED). Notably, the SAED on the export of diesel, petrol, and jet fuel (ATF) has been retained at nil.

According to an official notification, the new rates take effect on August 1. India had first imposed windfall profit taxes on July 1, 2022, joining several other nations in taxing supernormal profits of energy companies. These tax rates are reviewed every fortnight based on average oil prices over the previous two weeks.