Govt Raises Windfall Tax On Domestic Crude To Rs 12,100 Per Tonne, Cuts Levy On Export Of Diesel, ATF

The government has raised special additional excise duty (SAED) on crude petroleum to Rs 12,100 per tonne effective from September 30.

In the last fortnightly review on September 15, the windfall tax on crude oil produced domestically was fixed at Rs 10,000 per tonne. Additionally, the SAED or duty on the export of diesel will be slashed to Rs 5 per litre, from Rs 5.50 per litre currently.

The duty on jet fuel or Aviation Turbine Fuel (ATF) will be reduced from the current price of Rs 3.5 per litre to Rs 2.5 per litre effective Saturday. This reduction is expected to make Indian ATF exports more competitive in the global market.

The SAED on petrol will continue at nil. India first levied windfall profit taxes on July 1, 2022.

Noticeably, windfall tax refers to a tax levied on an unforeseen or unexpectedly large profit.

Earlier this month, the government raised the windfall tax on domestic crude oil production from Rs 6,700 per ton to Rs 10,000 per ton. This move was intended to capture a larger portion of profits from the rising crude oil prices, providing additional revenue for the government. Meanwhile, the windfall tax on the export of aviation turbine fuel (ATF) was reduced from Rs 4 per liter to Rs 3.50 per liter.