Govt cuts windfall profit tax on crude oil and diesel exports
The government has announced a significant reduction in the windfall profit tax applied to domestically produced crude oil and diesel exports, it said in a notification on December 18. The move sees a notable cut in the Special Additional Excise Duty (SAED) imposed on these commodities.
Effective today, December 19, the SAED on domestically produced crude oil is cut from ₹5,000 per tonne to ₹1,300 per tonne. Simultaneously, SAED on diesel exports has been scaled down from ₹1 per litre to ₹0.50 per litre.
ATF and Petrol Taxes
However, amid these reductions, the government has augmented the levy on aviation turbine fuel (ATF) exports. The tax, previously non-existent, has been set at ₹1 per litre. This will also be effective from December 19.
Contrarily, SAED on petrol will persist at a rate of zero, remaining unaffected by these alterations.
Periodic Updates
The windfall tax undergoes fortnightly revisions, contingent upon the fluctuations in international crude and product prices. Earlier on December 1, the government announced a decrease in the windfall tax on crude petroleum from ₹6,300/tonne to ₹5,000/tonne.
Further, during the previous review on November 16, the government slashed the windfall tax on crude petroleum by ₹3,500 from ₹9,800 per tonne to ₹6,300 per tonne. This was in line with the downward trend in global oil prices.
Before this, on November 1, the government raised the tax on crude oil from ₹9,050 per tonne to ₹9,800 per tonne. Subsequently, the duty on diesel exports was reduced by half to ₹2/litre, while the levy on jet fuel was eliminated, bringing it down from Re 1/litre to nil.
Source from: https://www.livemint.com/economy/govt-cuts-windfall-profit-tax-on-diesel-exports-crude-oil-11702947145531.html