Windfall profit tax on crude oil, diesel exports cut

Govt reduces windfall profit tax on crude oil & diesel exports. SAED on crude oil cut to ₹6,300/tonne & diesel to ₹1/litre. Levy on ATF & petrol exports remain zero. Tax rates reviewed every fortnight based on oil prices.

The government on November 16 cut the windfall profit tax on crude oil produced in the country and on exports of diesel in line with softening international oil prices.

The tax, levied in the form of Special Additional Excise Duty or SAED, on domestically produced crude oil has been reduced to ₹6,300 per tonne from ₹9,800 per tonne, according to an official notification.

SAED on the export of diesel was reduced to ₹1 per litre from ₹2 per litre.

The levy on the export of jet fuel or aviation turbine fuel (ATF) and petrol will continue to be zero.

The new tax rates came into effect from Thursday.

At the last revision effective from November 1, the government had increased the tax on crude oil to ₹9,800 per tonne from ₹9,050 per tonne. Simultaneously, the levy on the export of diesel was halved to ₹2 and that on jet fuel was brought to nil from ₹1 per litre.

International oil prices have softened since the last revision, necessitating the reduction. The basket of crude oil that India imports has averaged $84.78 per barrel this month as against $90.08 a barrel average in the month of October and $93.54 in September.