NEW DELHI: After a gap of two months, the government imposed the windfall tax on domestic crude oil production from nil to Rs 1,600 per tonne. However, there are no Special Additional Excise Duty (SAED) taxes on export of diesel, petrol or aviation turbine fuel (ATF).
These changes are effective from July 15). In May 2023, the government cut the windfall tax on petroleum crude to zero from Rs 4,100 per tonne. Tax rates are reviewed fortnightly based on average oil prices in the previous two weeks. Global crude oil prices have risen again on the back of supply cuts by Saudi Arabia and Russia.
The crude basket averaging below $75/bbl in May and June this year touched $80.92/bbl on July 13. India first imposed windfall profit taxes on 1 July 2022, joining a growing number of nations that tax supernormal profits of energy companies. At that time, export duties of Rs 6 per litre ($12 per barrel) each were levied on petrol and ATF and Rs 13 a litre ($26 a barrel) on diesel.