The Centre on Saturday slashed windfall gains tax on domestically-produced crude to ₹5,200 per tonne from earlier ₹5,700 per tonne. The export duty on petrol diesel and aviation turbine fuel (ATF) will continue to be nil.
The new rates will be effective June 1 2024, the Central Board of Indirect Taxes and Customs (CBIC) said in a late night notification Friday.
On May 16, the Centre had revised windfall tax on domestically produced crude oil to ₹5,700 down from ₹8,400 per tonne.
On April 16, the Centre raised the windfall tax on petroleum crude to ₹9,600 per tonne from ₹6,800, after firming of crude oil prices in the international market. It was further slashed to ₹8,400 per tonne.
India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax extraordinary profits of energy companies. The rates are reviewed every fortnight based on international crude oil prices in the previous two weeks.
When domestic crude oil's global benchmark price reaches $75 per barrel, the windfall tax typically kicks in. Additionally, the assessment on diesel, ATF, petroleum is applied assuming the item edges outperform $20 per barrel. The official notification stated that the Special Additional Excise Duty (SAED) for diesel and aviation fuel remained at zero. This tax is imposed in the form of SAED.
