Centre Increases Windfall Tax On Crude Petroleum To Rs 7,100 Per Tonne

The Indian government has increased the windfall tax on crude petroleum to Rs 7,100 per tonne from Rs 4,250 per tonne, with effect from today, August 15, according to a notification by the finance ministry.

The ministry further informed that Special Additional Excise Duty (SAED) on diesel will also be hiked to Rs 5.50 per litre from Re 1 per litre at present. A duty of Rs 2 per litre will be imposed on jet fuel or ATF with effect from August 15. Currently, there is no SAED on the jet fuel.

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However, SAED on petrol will remain zero, just like the last time windfall tax was hiked. Earlier this month, the government had hiked windfall tax on crude petroleum to Rs 4,250 per tonne from Rs 1,600 with effect from August 1. 

India first imposed windfall profit taxes on July 1, 2022. It imposed tax on crude oil producers and extended the levy on exports of gasoline, diesel and ATF, joining a growing number of nations that tax super normal profits of energy companies.

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The government had slapped an export duty of petrol, diesel and jet fuel (ATF), a Special Additional Excise Duty (SAED) was levied on locally produced crude oil. The ministry generally reviews  the windfall tax every 14 days and the last revision was done with immediate effect on Aug 1.