Govt hikes windfall tax on crude oil

New Delhi: The government has hiked windfall tax on domestically produced crude oil to Rs6,000 per tonne, from Rs3,250 per tonne, with effect from Tuesday.

The tax is levied in the form of Special Additional Excise Duty (SAED). The SAED on the export of diesel, petrol and jet fuel or ATF, has been retained at ‘nil’.

The new rates are effective from July 2, an official notification said. India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies. The tax rates are reviewed every fortnight based on average oil prices of the previous two weeks.