New Delhi: On Monday, July 2, the Indian government declared an increase in the windfall tax imposed on domestically produced crude oil. The tax has been raised to ₹6,000 per metric ton from ₹3,250 previously. As per an official announcement, the Special Additional Excise Duty (SAED) on the export of diesel, petrol, and ATF remains at zero.
The updated tax rates will be implemented starting today, specifically on July 2nd. India implemented windfall profit taxes for the first time in July 2022. During that period, petrol and ATF had export duties of ₹6 per litre each, while diesel had an export duty of ₹13 per litre.
Tax rates are reassessed biweekly according to the average oil prices from the past two weeks.
If the global benchmark rates go above $75 per barrel, a windfall tax will be imposed on domestic crude oil. If the difference between the price of crude oil and the price of finished petroleum products exceeds $20 per barrel, the export of diesel, ATF, and petrol will be subject to a levy.
In the most recent biweekly evaluation, the government reduced the tax on domestically made crude oil to ₹3,250 per tonne from ₹5,200 per tonne. The tax imposed on domestically produced crude petroleum in the form of Special Additional Excise Duty or SAED.
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