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The central government has reduced windfall tax on crude petroleum, according to a government notification.
The special additional excise duty (SAED) on crude petroleum has been slashed from Rs 8,400 per tonne to Rs 5,700 per tonne with immediate effect. The tax, which is revised every fortnight, remains unchanged at zero for diesel and aviation turbine fuel. The government on May 1 cut the windfall tax on petroleum crude to Rs 8,400 rupees a ton from Rs 9,600 rupees. The government had on April 16 raised the windfall tax on petroleum crude to Rs 9,600 per cent tonne from Rs 6,800. A tax levied on an unforeseen or unexpectedly large profit is called a windfall tax. India started the windfall tax on crude oil producers and on exports of gasoline, diesel and the aviation fuel in July 2022, reportedly to regulate private refiners who wanted to sell fuel overseas instead of locally, to gain from firm refining margins. (ANI)
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