The government has recently revised the windfall tax on domestically-produced crude oil, reducing it to Rs 1,700 per tonne from the previous Rs 2,300 per tonne.
This adjustment comes into effect starting Tuesday and is implemented through the Special Additional Excise Duty (SAED). Notably, the SAED on the export of diesel, petrol, and jet fuel (ATF) remains unchanged at nil, as per the official notification.
These updated tax rates are applicable from January 16 onwards. It's worth noting that India introduced windfall profit taxes on July 1, 2022, aligning itself with other nations that impose taxes on the supernormal profits of energy companies.
The government regularly reviews the tax rates every fortnight, considering the average oil prices from the preceding two weeks. This dynamic approach ensures a responsive and adaptable taxation system in response to fluctuations in the oil market.
(With Agency Inputs)
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