Government slashed the windfall tax on petroleum crude oil to Rs 1,700 per tonne

16 Jan 2024

As per a government notification, the Government of India yesterday reduced the windfall tax on petroleum crude oil to Rs 1,700 per tonne from Rs 2,300 per tonne. The order states that the cut will take effect from January 16. The government's levy on domestically produced oil in the form of Special Additional Excise Duty (SAED) was raised to Rs 2,300 per tonne from Rs 1,300 per tonne on January 2, 2024.

The first time India imposed a tax on windfall profits was on July 1, 2022, joining the growing number of nations that levy taxes on the extraordinary profits of energy companies. At that time, a duty of Rs 6 per litre ($12 per barrel) was imposed on petrol and ATF, while a duty of Rs 13 per litre ($26 per barrel) was imposed on diesel.