June 15th 2024.
In a recent development, the government has announced a decrease in the windfall tax imposed on domestically-produced crude oil. The tax will now stand at Rs 3,250 per tonne, down from the previous Rs 5,200, and will be effective starting Saturday.
This tax is collected in the form of Special Additional Excise Duty (SAED) and is applicable on the export of diesel, petrol, and jet fuel (also known as ATF). However, there is some good news for the energy sector as the SAED on these products will remain at 'nil'.
According to an official notification, the revised tax rates will come into effect from June 15. This move comes as a relief for oil companies, who have been facing the burden of windfall profit taxes since July 1, 2022. India joined a list of countries that impose such taxes on energy companies to regulate their supernormal profits.
It is worth noting that these tax rates are evaluated every fortnight, taking into consideration the average oil prices over the previous two weeks. This ensures that the tax rates stay in line with the current market conditions.
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