Government Increases Windfall Tax on Domestically Produced Crude Oil

The government has raised the windfall tax on domestically produced crude oil to Rs 7,000 per tonne from the previous Rs 6,000 per tonne. The Special Additional Excise Duty (SAED) on the export of diesel, petrol, and jet fuel remains at 'nil'. New rates take effect from July 16.

The government on Monday announced an increase in the windfall tax on domestically produced crude oil, raising it to Rs 7,000 per tonne from the previous Rs 6,000 per tonne.

The hike comes in the form of a Special Additional Excise Duty (SAED). However, the SAED on the export of diesel, petrol, and jet fuel, or ATF, remains at 'nil'.

According to an official notification, the new rates will be effective from July 16. India first imposed windfall profit taxes on July 1, 2022, joining several nations that tax the supernormal profits of energy companies. These tax rates are reviewed every fortnight, based on the average oil prices over the preceding two weeks.

(With inputs from agencies.)