Government Lowers Crude Petroleum Windfall Tax

With effect from Wednesday, the government has reduced the windfall tax on domestically produced crude oil from Rs 9,600 per tonne to Rs 8,400 per tonne.

Special Additional Excise Duty (SAED) is the tax imposed.

The SAED has remained at zero for the export of gasoline, diesel, and aviation fuel, or ATF. According to an official statement, the revised tariffs will take effect on May 1.

On July 1, 2022, India introduced windfall profit taxes, joining a number of other countries that put taxes on energy firms’ supernormal earnings.

Every two weeks, the average oil price over the preceding two weeks is used to reevaluate the tax rates.