Govt hikes windfall tax on crude petroleum to Rs 7,000 per tonne

The government on Monday hiked windfall tax on domestically produced crude oil to Rs 7,000 per tonne, from Rs 6,000 per tonne.

The tax is levied in the form of Special Additional Excise Duty (SAED).

The SAED on the export of diesel, petrol and jet fuel or ATF, has been retained at 'nil'.
 

The new rates are effective from July 16, an official notification said.

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.

The government had raised the windfall tax on petroleum crude to Rs 6,000 ($72) per metric tonne from Rs 3,250, on July 2, as per a notification.

The windfall tax, which is revised every two weeks, remained unchanged at zero for diesel and aviation turbine fuel during the July 2 update of prices..

Govt had cut the windfall tax on petroleum crude to Rs 3,250 per tonne from Rs 5,200 on June 15.

From July 2022, India started taxing crude oil production and exports of gasoline, diesel and aviation fuel to regulate private refiners that wanted to sell fuel overseas instead of locally to gain from robust refining margins.



(With inputs from Reuters)