Centre hikes windfall tax on petroleum crude
Reuters
Synopsis
Government raised windfall tax on petroleum crude to 4,900 rupees/tonne from 4,600 on March 16 through SAED. Diesel tax increased to Rs 1.5/litre on Feb 16.
By ET Online
Last Updated:
The government has raised its windfall tax on petroleum crude to 4,900 rupees ($59.15) a tonne from 4,600 rupees with effect from March 16, according to a government notification released on Friday.
Earlier on February 16, the government had raised the windfall tax on petroleum crude to Rs 3,300 a metric ton from Rs 3,200 and hiked the tax on diesel to Rs 1.5 a litre from zero.
India imposed a windfall tax on crude oil producers from July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel, as private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally. The government revises the tax fortnightly.
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The tax is levied in the form of Special Additional Excise Duty (SAED). According to an official notification, SAED on export of diesel, petrol and jet fuel or ATF has been retained at nil.Earlier on February 16, the government had raised the windfall tax on petroleum crude to Rs 3,300 a metric ton from Rs 3,200 and hiked the tax on diesel to Rs 1.5 a litre from zero.
India imposed a windfall tax on crude oil producers from July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel, as private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally. The government revises the tax fortnightly.
(You can now subscribe to our Economic Times WhatsApp channel)
