Windfall Tax Cut: India Reduces Crude Oil Levy

1 Aug 2024 , 11:45 AM

In response to the lowering of oil prices, India reduced the windfall rate on petroleum produced domestically from ₹7,000 per tonne to ₹4,600 per tonne.

Fuel for aviation turbines, diesel, and gasoline will remain free of export duties.

The Central Board of Indirect Taxes and Customs (CBIC) announced in a statement released late on Wednesday that the new rates would take effect on August 1.

The center increased the windfall tax on domestically produced crude oil to ₹7,000 per tonne from ₹6,000 per tonne in its most recent revision, which was made on July 16.

Special Additional Excise Duty (SAED) is the tax imposed.

India extended the tax on gasoline, diesel, and aviation fuel exports and levied a windfall tax on producers of crude oil starting in July 2022. This was due to private refiners’ preference to sell fuel abroad in order to benefit from strong refining margins rather than locally. Every two weeks, the government updates the tax.

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