Windfall Tax: According to the notification issued by the Finance Ministry, the windfall tax on petroleum crude has been reduced by Rs 600 per tonne to Rs 1,700 per tonne. This tax is taken in the form of Special Additional Excise Duty (SAED).
Windfall Tax: Considering the prices of crude oil in the international market, the Central Government has once again made changes in the Windfall Tax. The government has reduced the windfall gain tax on domestic crude oil exports. According to the notification issued by the Finance Ministry, the windfall gain tax on export of domestic crude oil has been reduced from Rs 2300 per tonne to Rs 1700 per tonne.
According to the notification, the new rates have come into effect from today (16 January 2024). Earlier, in the review meeting held on January 2, it was decided to increase the windfall tax on domestically produced crude oil from Rs 1,300 per tonne to Rs 2,300 per tonne.
Reduction of Rs 600 per tonne
According to the notification issued by the Finance Ministry, the windfall tax on petroleum crude has been reduced by Rs 600 per tonne to Rs 1,700 per tonne. This tax is taken in the form of Special Additional Excise Duty (SAED). Let us tell you, the government reviews the windfall tax every 15 days. It is reviewed only on the basis of oil prices prevailing in the market.
Windfall Tax: When is it imposed?
Additional tax is imposed by the government on oil marketing companies making unexpected profits. This is called windfall tax. Windfall tax is imposed on such companies or industries which have suddenly benefited from the changing circumstances. The central government had imposed tax on windfall profits for the first time on July 1, 2022. Apart from India, windfall tax is imposed on oil/energy companies in many countries.
