- By Anushka Vats
- Mon, 15 Jul 2024 11:29 PM (IST)
- Source:JND
India on Monday increased windfall tax on domestically produced crude oil to Rs 7,000 per tonne, from Rs 6,000 per tonne. The tax is imposed in the form of Special Additional Excise Duty (SAED).
According to an official notification cited by PTI, the new rates will come into effect from July 16. India introduced windfall profit taxes for the first time on July 1, 2022, joining a number of other countries that tax energy businesses' above-average profits.
The increase comes less than 15 days after the central government raised the windfall tax on petroleum crude to Rs 6,000 per tonne from Rs 3,250 earlier.
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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, to regulate private refiners who wanted to sell fuel overseas instead of locally, to gain from firm refining margins.
The windfall tax is typically relooked every two weeks. The tax, which is revised every fortnight, remains unchanged at zero for diesel, petrol, and aviation turbine fuel.
(With inputs from agencies)
