The government has reduced the windfall tax on crude oil and diesel.


The export duty on petrol remains zero, while the tax on aviation turbine fuel has been raised to Re 1 per litre. The Ministry of Finance has cut the windfall tax on domestic crude and the fuel charge.

The government has reduced the windfall tax on crude oil and diesel.

On July 1, last year, India became the first country to impose windfall profit taxes on energy corporations, joining a growing list of countries that do so.

The government reduced the windfall profit tax on domestic crude oil and diesel exports on Monday. According to an official statement, the Special Additional Excise Duty (SAED) on domestically produced crude oil has been decreased from Rs 5,000 per tonne to Rs 1,300.

SAED on fuel exports has been cut from Rs 1 to Rs 0.50 per litre. However, the charge on the export of jet fuel, or ATF, has been increased from nil to Rs 1 per litre. SAED on petrol will remain zero. The higher tax rates will take effect on Tuesday. On July 1, last year, India became the first country to impose windfall profit taxes on energy corporations, joining a growing list of countries that do so. The tax rates are reviewed every two weeks depending on the average of the previous two weeks’ oil prices.

The new tax rates will go into effect on December 19, according to the statement.

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