The government has hiked windfall tax on domestically produced crude oil to ₹6,000 per tonne, from ₹3,250 per tonne, with effect from Tuesday, July 2, 2024.

Explained | What is windfall tax and why are countries imposing it on the energy sector right now?

The tax is levied in the form of Special Additional Excise Duty (SAED).

The SAED on the export of diesel, petrol and jet fuel or ATF, has been retained at ‘nil’.

The new rates are effective from July 2, an official notification said.

India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies.

The tax rates are reviewed every fortnight based on average oil prices of the previous two weeks.

The new rates of windfall tax on domestically-produced crude oil are effective from June 1. File
| Photo Credit: Reuters

The government has reduced windfall tax on domestically-produced crude oil to ₹5,200 per tonne from ₹5,700 with effect from June 1.

The tax is levied in the form of Special Additional Excise Duty (SAED).

SAED on the export of diesel, petrol and jet fuel or ATF, has been retained at ‘nil’.

The new rates are effective from June 1, an official notification said.

India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.