New Delhi: The Union government has decided to reduce the windfall tax on domestically-produced crude oil. The windfall tax is slashed to Rs 1,700 per tonne from Rs 2,300 per tone. The new rate will be effective from January 16. This tax is implemented as the Special Additional Excise Duty (SAED).
The Special Additional Excise Duty on the export of diesel, petrol, and jet fuel (ATF) will remain at nil.
Also Read: Union government imposes 50% export duty on molasses
India is the world’s largest consumer and importer of crude oil. The Union government in July last year imposed the windfall tax on crude oil producers and levies on exports of petrol, diesel and aviation fuel. Windfall tax is levied as a special additional excise duty which is aimed at absorbing the super-profits earned by domestic crude oil producers due to high global crude, product prices. The Union government reviews the windfall tax and associated rates in a fortnightly manner.
Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel, and aviation turbine fuel (ATF).
A windfall tax is imposed on domestically produced crude oil when the rates of the global benchmark exceed $75 per barrel. For the export of diesel, aviation turbine fuel (ATF), and petrol, the levy is applicable when the product cracks, or margins, surpass $20 per barrel.
Post Your Comments