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The move to scrap the windfall tax, effective immediately, comes after two months of deliberations even as global crude oil prices have stabilised.
India first imposed windfall profit taxes on July 1, 2022.
The central government has decided to scrap the windfall tax on the export of petrol, diesel and aviation turbine fuel (ATF), according to CNBC-TV18. The move, effective immediately, comes after two months of deliberations even as global crude oil prices have stabilised.
The Ministry of Petroleum and Natural Gas had written a letter to the finance ministry in this regard.
Phenomenal profits made by some oil refiners on exporting fuel at the expense of domestic supplies had prompted the government to introduce an export tax on petrol, diesel and ATF in July 2022.
The government in September slashed the windfall tax on domestically produced crude oil to ‘nil’ per tonne.
The tax is levied in the form of Special Additional Excise Duty (SAED) and is notified fortnightly based on average oil prices in two weeks.
The last such revision took place effective August 31 when the windfall tax on crude petroleum was set at Rs 1,850 per tonne.
The SAED on the export of diesel, petrol and jet fuel or ATF, has been retained at ‘nil’ with effect from September 18.
India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies.
