look news india
Windfall Gains Tax: The government has reduced the windfall gain tax on crude oil produced in the country. According to the new notification, the windfall gain tax on petroleum crude has been reduced from ₹ 7,000 per metric tonne to ₹ 4,600 per metric tonne. The new rates will be applicable from August 1, 2024. This tax is levied as Special Additional Excise Duty (SAED). According to the official notification, SAED has been kept zero on the export of diesel, petrol and jet fuel i.e. ATF.
The rate of windfall profit tax is reviewed every 15 days based on the average oil prices of the last two weeks. Earlier, on July 16, the government had increased the windfall profit on petroleum crude by 16.7 percent from Rs 6,000 to Rs 7,000 per metric tonne. Windfall profit tax on diesel was kept unchanged at zero. This tax was also announced to be zero on petrol and aviation turbine fuel (ATF).
Windfall Gains Tax is applicable from 1st July 2022
The government's imposition of windfall profits tax on crude oil production and export of gasoline, diesel and aviation fuel was aimed at managing private refining companies if they export their products instead of selling them in the Indian market to take advantage of strong refining margins. This tax is imposed on the profits earned by oil companies if they sell crude oil at a price above $75 per barrel. This levy applies to exports of diesel, ATF and petrol when the margin exceeds $20 per barrel.
