NEW DELHI: The government is expecting to mop up Rs 25,000 crore from windfall gain tax, or Special Additional Excise Duty (SAED) from the production of crude oil and the export of diesel, petrol, and aviation turbine fuel (ATF) in this fiscal, minister of state Rameshwar Teli told parliament.
“As per the Department of Revenue, Ministry of Finance, the data for SAED on production of crude oil is not maintained separately. The collection of SAED, for the current financial year, is estimated at the level of Rs 25,000 crore from production of crude oil, export of petrol, diesel and ATF,” said the minister in a written reply to Rajya Sabha.
The ministry first imposed the windfall tax on oil companies on July 1, 2022, joining a number of countries that tax super normal profits of energy companies. It levied export duties of Rs 6 per litre each on petrol and ATF, and Rs 13 a litre on diesel. Also, Rs 23,250 per tonne on domestic crude production. The windfall tax was reviewed every fortnight and rates are moderated based on international oil prices.
On the ethanol blending, Teli said oil marketing companies (OMCs) have procured 80.09 crore litres of ethanol up to January 30, 2023, for blending in petrol during the Ethanol Supply Year (ESY) 2022-23 and nearly 6 crore litres of bio-diesel for blending with diesel during the financial year 2022-23. Further, 57 Bio-CNG projects including 40 under the sustainable alternative towards affordable transportation (SATAT) initiative have been commissioned till December 31, 2022.
“The blending of ethanol in petrol during the (ethanol supply year) ESY2021-22 has resulted in a saving of nearly 3073 TMT of petrol and the blending of bio-diesel in diesel during FY23 has resulted in a saving of nearly 47 TMT of diesel.
Windfall tax on oil cos introduced on July 1
First imposed the windfall tax on oil companies on July 1, 2022, joining a number of countries that tax super normal profits of energy companies. It levied export duties of Rs 6 per litre each on petrol and ATF, and Rs 13 a litre on diesel. Also, Rs 23,250 per tonne on domestic crude production. Windfall tax was reviewed every fortnight and rates are moderated based on international oil prices