Govt Reduces Windfall Tax On Domestic Crude Oil To Rs 3,250 Per Tonne
The last revision on 1 June saw a decrease in the windfall tax on crude oil from Rs 5,700 to Rs 5,200 per tonne
The Indian government has cut the windfall tax on domestically produced crude oil, lowering the rate to Rs 3,250 per tonne from the previous Rs 5,200 per tonne. This new rate will come into effect on 15 June 2024, as per the notification issued by the Central Board of Indirect Taxes and Customs (CBIC) late Friday night.
Despite this adjustment, the export duty on petrol, diesel, and aviation turbine fuel (ATF) will remain at zero, continuing the current policy stance. The last revision on 1 June saw a decrease in the windfall tax on crude oil from Rs 5,700 to Rs 5,200 per tonne.
The windfall tax had reached its peak on 16 April, when it was increased to Rs 9,600 per tonne from Rs 6,800, reflecting the rising crude oil prices in the global market at that time.
India first implemented windfall profit taxes on 1 July 2022, joining several other nations in taxing the extraordinary profits of energy companies. These tax rates are reviewed biweekly, with adjustments based on the international crude oil prices observed in the preceding two weeks.
