Economic Boost: Government Implements Windfall Tax Cut on Crude Oi

The government on Monday cut the windfall profit tax on crude oil produced in the country and on exports of diesel.

The tax, levied in the form of Special Additional Excise Duty or SAED, on domestically produced crude oil has been reduced to Rs 1,300 from Rs 5,000 per tonne, according to an official notification.

Tax Relief: Exploring the Impact of Windfall Tax Reduction on Crude Oil

SAED on petrol will continue to be zero. The new tax rates will come into effect from Tuesday.

India first imposed windfall profit taxes on July 1 last year, joining a growing number 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