Government Slashes Windfall Profit Tax On Local Crude Oil, Diesel Exports
The government lowered the windfall profit tax on the nation's locally produced diesel and crude oil exports on Monday.
The Special Additional Excise Duty (SAED) levy on crude oil has been significantly reduced from INR 5,000 to INR 1,300 per tonne, according to the official notification.
Similarly, the SAED on fuel exports has been slashed to INR 0.50 per litre from the previous INR 1 per litre. This move is part of the government's efforts to reform the tax laws in the energy sector.
However, the tax dynamics for jet fuel, or ATF, have changed. The SAED on ATF has been increased to INR 1 per litre, compared to its previous nil status. This adjustment reflects a shift in the taxation approach for specific energy products.
It is crucial to note that the SAED on petrol remains unaffected, staying at zero. The revised tax rates, as announced, are set to be implemented starting Tuesday. This modification in taxation policies aims to strike a balance in economic considerations related to the energy sector in the country.
India initially introduced windfall profit taxes on 1 July of the preceding year, aligning itself with the global trend of taxing supernormal profits generated by energy companies.
Notably, the tax rates undergo a fortnightly review, contingent on the average oil prices recorded in the preceding two weeks, ensuring a dynamic and responsive approach to the evolving economic landscape.
