Windfall Tax Slashed To ₹3250/MT: 66% Drop From 3 Fortnights Ago

Windfall Tax Slashed To ₹3250/MT: 66% Drop From 3 Fortnights Ago

The government has knocked off the windfall tax on domestically produced crude oil from Rs 5,200 per tonne to Rs 3,250. Special Additional Excise Duty (SAED) is the tax imposed.

Vikrant DurgaleUpdated: Saturday, June 15, 2024, 12:45 PM IST
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The government has knocked off the windfall tax on domestically produced crude oil from Rs 5,200 per tonne to Rs 3,250. Special Additional Excise Duty (SAED) is the tax imposed.

The new rates go into effect on June 15, according to a formal notification. On July 1, 2022, India introduced windfall profit taxes, joining a number of other countries that impose taxes on energy companies' supernormal profits.Every two weeks, the average oil price over the preceding two weeks is used to reevaluate the tax rates.

Every two weeks, the average oil price over the preceding two weeks is used to reevaluate the tax rates.

Previous Tax Cuts

On May 1, the government lowered the windfall tax on petroleum crude from Rs 9,600 to Rs 8,400 per metric ton. That's a 12.5 per cent slash from the previous fortnight. Now it has been cut down even further from Rs 5200 per tonne Rs 3250 per tonne, 66 per cent markdown from Rs 9600 and 37.5 per cent from the previous rate of Rs 5200.

Nil Duty

SAED has been kept at "nil" for the export of gasoline, diesel, and aviation turbine fuel, or ATF.

India began taxing the production of crude oil in July 2022 and the export of gasoline, diesel, and aviation fuel in an effort to control private refiners who preferred to sell fuel abroad rather than domestically in order to benefit from strong refining margins.

Fuel Prices Across India
In Bangalore, Chandigarh, Chennai, Kolkata, Mumbai City, and New Delhi, the prices of petrol were Rs 101.94, 96.20, 102.63, 106.03, 111.35, and 96.72 respectively.

The diesel was around Rs 87.89, Rs 84.26, Rs 94.24, Rs 92.76, Rs 97.28 and Rs 89.62 for Bangalore, Chandigarh, Chennai, Kolkata, Mumbai City, and New Delhi Respectively.

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