India Cuts Windfall Tax on Crude Oil to Rs 5,700 per Tonne

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India Cuts Windfall Tax on Crude Oil to Rs 5,700 per Tonne

The government has reduced the windfall tax on domestically produced crude oil to Rs 5,700 per tonne from Rs 8,400 per tonne, effective from Thursday. This tax is…

The government has reduced the windfall tax on domestically produced crude oil to Rs 5,700 per tonne from Rs 8,400 per tonne, effective from Thursday.

This tax is imposed as Special Additional Excise Duty (SAED). The SAED on the export of diesel, petrol, and jet fuel (ATF) remains at ‘nil’.

The new rates came into effect from May 16, as stated in an official notification. India introduced windfall profit taxes on July 1, 2022, aligning with many other countries that tax the supernormal profits of energy companies.

The tax rates are reviewed every two weeks based on the average oil prices from the previous fortnight.

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