Government Significantly Reduces Windfall Profit Tax on Crude Oil and Diesel Exports
New Delhi: The government on Monday cut the windfall profit tax significantly on crude oil produced in the country and on exports of diesel. The tax, levied in the form of special additional excise duty or SAED, on domestically produced crude oil has been reduced to Rs 1,300 from Rs 5,000 per tonne, according to an official notification issued in the late evening on Monday.
"Effective today, ie; December 19, the SAED on domestically produced crude oil is cut from Rs 5,000 per tonne to Rs 1,300 per tonne. Simultaneously, SAED on diesel exports has been scaled down from Rs 1 per litre to Re 0.50 per litre," the notification said.
On aviation turbine fuel or ATF and tetrol taxes, the government has also augmented the levy on ATF exports. The tax, previously non-existent, has been set at Re 1 per litre and his will also be effective from December 19 as well. Contrarily, SAED on petrol will persist at a rate of zero, remaining unaffected by these alterations, it said.
The windfall tax undergoes fortnightly revisions, contingent upon the fluctuations in international crude and product prices. As far as these taxes are concerned, key players in fuel export in India include Reliance Industries Ltd, operating the world's largest single-location oil refinery complex in Jamnagar, Gujarat, and Nayara Energy, which is backed by Rosneft.
Earlier on December 1, the government announced a decrease in the windfall tax on crude petroleum from Rs 6,300/tonne to Rs 5,000/tonne. Further, during the previous review on November 16, the government also cut the windfall tax on crude petroleum by Rs 3,500 from Rs 9,800 per tonne to Rs 6,300 per tonne.
Before this, on November 1, the government raised the tax on crude oil from ₹9,050 per tonne to ₹9,800 per tonne. Subsequently, the duty on diesel exports was reduced by half to ₹2/litre, while the levy on jet fuel was eliminated, bringing it down from Re 1/litre to nil.
