This is the third time the government hiked windfall tax on domestically produced crude oil this month. On February 15, the government revised it to Rs 3,300 per tonne from the earlier Rs 3,200 per tonne
Union Govt hikes windfall gains tax on crude petroleum marginally once again in Feb 2024:3rd time in Feb 2024
For the third time, the central government hiked windfall tax on domestically produced crude oil this month. On February 15, the government revised it to Rs 3,300 per tonne from the earlier Rs 3,200 per ton
On 29th February, The Union government revised its windfall gains tax on crude petroleum from March 1, 2024. This tax levied in the form of a Special Additional Excise Duty (SAED).
As per the revisions, SAED on crude petroleum will increase from Rs 3,300/tonne to Rs 4,600/tonne.
For third time the government hiked windfall tax on domestically produced crude oil this month. On February 15th, it was increased to Rs 3,300 per tonne from Rs 3,200 per tonne. Before that, it was Rs 1,700 per tonne.
Union Govt hikes windfall gains tax on crude petroleum marginally once again in Feb 2024:Mariginal relief on Diesel
Taxes on diesel, however, has once again decreased from 1.50/litre to Rs nil/Litre. It was revised to Rs 1.50/litre from nil earlier this month.
Further, SAED on petrol and aviation turbine fuel (ATF) will remain nil.
The government levies tax on windfall profits made by oil producers on any price they get above a threshold of $75 per barrel. The levy on fuel exports is based on cracks or margins that refiners earn on overseas shipments. These margins are primarily a difference between the international oil price realized and the cost.
India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies. At that time, export duties of Rs 6 per litre ($12 per barrel) each were levied on petrol and ATF and Rs 13 a litre ($26 a barrel) on diesel.