The Indian government has officially decided to remove the windfall tax on petroleum products, including petrol, diesel, aviation turbine fuel (ATF), and crude oil exports. This decision is expected to have significant implications for the energy sector, potentially boosting exports and reducing operational costs for energy companies.
The windfall tax, which was initially implemented to curb excess profits from high crude oil prices, is now being lifted as crude prices stabilize globally.
Finance Minister Nirmala Sitharaman laid papers on the table to revoke specific excise duties, including the Special Additional Excise Duty (SAED) on the production of petroleum crude and on exports of Aviation Turbine Fuel (ATF), motor spirit, and high-speed diesel oil.
Additionally, the government has decided to rescind the Road and Infrastructure Cess (RIC) on exports of motor spirit and high-speed diesel oil. These measures, published under Notification Nos. 29/2024 and 30/2024 of the Central Excise Act, 1944, reflect the government’s intent to boost the competitiveness of Indian energy companies and align with the global stabilization of crude oil prices. The decision is likely to benefit key stakeholders in the oil and energy sectors, enhancing exports and operational efficiency.
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