courtesy: zee business
India has reduced the windfall tax on petroleum crude to Rs. 5,700 per metric ton from Rs. 8,400 with the effect from May 16, as per the reports of Reuters.
As per a notification from the government on May 15, there is no change in windfall tax for diesel and aviation turbine fuel (ATF).
The windfall tax is revised every two weeks, and was earlier cut on May 1, only for petroleum crude to Rs. 8,400 a metric ton from Rs. 9,600 per metric ton from April 16.
Earlier, in March 2024, the tax was Rs. 4,600 per metric during the first week of the month, and going ahead into the month, it rose to Rs. 4,900 per metric during mid March.
The rise in taxation manifests through the imposition of a Special Additional Excise Duty (SAED) on domestic crude oil producers.
The windfall tax was implemented in India to regulate private refiners, who planned onto selling the fuel overseas instead of locally in a bid to gain from robust refining margins. The tax was implied in July 2022, on exports of gasoline, diesel, and aviation fuel.
