The windfall profit tax on domestically produced crude oil has been reduced by the central government from Rs 5,050 per tonne to Rs 4,350 per tonne.
It was learnt that the additional excise duty on aviation turbine fuel (ATF) was also reduced, from Rs 6 per litre to Rs 1.5 per litre, according to a central government notification. The Center has decreased the windfall tax on fuel exports in the announcement from Rs 7.5 per litre to Rs 2.50 per litre. The revised prices will take effect immediately. The announcement states that there will still be no excise charge on petrol. To address the shortage of energy products on the domestic market, the Indian government for the first time added a special additional excise duty on the export of petrol and diesel, known as the “windfall tax,” on July 1, 2022.
A “windfall tax” is a higher tax rate levied by governments against certain industries when economic conditions allow those industries to attract above-average profits.
In November 2022, the Centre slashed the windfall tax on the export of crude oil from Rs 11,000 to Rs 9,500 per tonne, as per an official gazette notification by the Ministry of Finance.
