Hikes In Windfall Tax On Crude Petroleum, Diesel Exports, ATF Effective From August 15; Key Details Here

The hike in windfall tax by Rs 7,100 per tonne has come into effect from August 15, 2023. The announcement was notified by the Finance Ministry on Monday. The Centre has also raised special additional excise duty on the export of diesel, and jet fuel.

From August 15, 2023, the special additional excise duty on crude petroleum is increased to Rs 7,100 per tonne compared to Rs 4,250 per tonne that was in the previous fortnight.

Further, the special additional excise duty (SAED) or duty has been hiked to Rs 5.50 per litre on the export of diesel from the previous Rs 1 per litre.

Also, Rs 2 per litre duty will be levied on the jet fuel prices or aviation turbine fuel (ATF). Earlier, there was no SAED on jet fuels.

Notably, petrol will continue to see zero SAED.

The government first imposed windfall tax was effective from July 1, 2022.

Since stock markets were closed on Tuesday due to the celebration of Independence Day. However, oil and aviation stocks will react to the latest hike in the windfall tax on Wednesday when trading will be resumed.

On Monday, BSE Oil & Gas index ended at 18,982.98, lower by 76.80 points or 0.40%. Stocks like GAIL, Adani Total Gas, Indraprastha Gas, HPCL, Indian Oil, Gujarat Gas, and Petronet LNG were among the bears by tumbling from 0.5% to 2.5%. However, heavyweight Reliance Industries and ONGC were top gainers.

Meanwhile, InterGlobe Aviation and SpiceJet rallied on August 14 by 1.3% and 6.72% to end at Rs 2548.35 apiece and Rs 33.67 apiece on BSE.

As per Clear report, a windfall tax is a higher tax levied by the government on specific industries when they experience unexpected and above-average profits. The windfall tax is hiked to make the companies that enjoyed a sudden increase in profit pay a fair share of their money. It will help the government overcome losses from the recent financial crisis. This crisis is affecting the Indian economy, and Government need to compensate for that. The government has planned a windfall tax hike to recover its losses.