The government has cut windfall tax on domestically produced crude oil to ₹8,400 per tonne from ₹9,600 per tonne with effect from Wednesday.

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 May 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.

New Delhi:

The government has increased the windfall tax on petroleum crude to 10,000 rupees ($120.36) per ton from 6,700 rupees, effective September 16, according to a government notification on Friday.

The government also cut the windfall tax on aviation turbine fuel to 3.50 rupees per litre from 4 rupees.

The levy on diesel has been cut to 5.50 rupees per litre from 6 rupees, the notification said.

On September 1, the government cut the windfall tax on petroleum crude to 6,700 rupees per ton from 7,100 rupees.

India imposed the windfall tax on crude oil producers in July last year and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.