Centre Increases Windfall Tax On Domestic Crude Oil, Diesel Export And ATF
The Special Additional Excise Duty (SAED) or duty on export of diesel will also be hiked to Rupees 5.50 per litre from Re 1 per litre at present with effect from August 15.
The Centre on Monday increased the special edition excise duty on crude petroleum to Rs 7,100 per tonne with effect from August 15. The windfall tax on domestically produced crude oil was set at Rupees 4,250 per tonne in the last fortnightly review, as per a PTI report. The Special Additional Excise Duty (SAED) or duty on export of diesel will also be hiked to Rupees 5.50 per litre from Re 1 per litre at present, the report added.
Jet fuel or the ATF will invite a duty of Rupees 2 per litre with effect from August 15. Currently, there is no SEAD on the jet fuel while SAED on petrol will continue to be zero.
Earlier this month on August 1, the Government of India had increased windfall tax on domestic crude oil. Special Additional Excise Duty (SAED) on crude petroleum was increased from Rs 1,600/tonne to Rs 4,250/tonne. SAED on diesel had been hiked from Nil/litre to Rs 1/litre.
Windfall profit taxes were first imposed in India on July 1, 2022.
India joined a growing number of nations that tax super normal profits of energy companies. At that time, petrol and ATF attracted export duties of Rs 6/litre ($12 per barrel) each, and Rs 13/litre ($26 a barrel) was levied on diesel. A Rs 23,250/tonne ($40 per barrel) windfall profit tax on domestic crude production was also levied.
The government reviews tax rates every fortnight to calibrate the tax mop-up.
Earlier in May, the government had cut the windfall gains tax on domestically-produced crude oil to nil, while continuing the Zero rate on the export of diesel and Aviation Turbine Fuel (ATF).
According to an official order dated May 15, the government had slashed the special additional excise duty (SAED) on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) to nil from Rs 4,100/tonne with effect from May 16, 2023, PTI reported.
Top Headlines
