Govt hikes windfall tax on domestic crude, diesel export, ATF

Starting November 1, the Indian government has raised the windfall tax on domestically produced petroleum crude to Rs 9,800 per tonne, up from Rs 9,050 per tonne, according to an official announcement. Meanwhile, the windfall tax on aviation turbine fuel has been abolished, down from Re 1 per litre. Additionally, the government has reduced the windfall tax on diesel to Rs 2 per litre, previously set at Rs 4 per litre.

IOC shares were up nearly 4 per cent at around 2 pm, while BPCL rose above 2 per cent. ONGC was also up nearly 1.5 per cent.

Petrol, Diesel Rates: India has significantly increased the windfall profit tax on crude oil from Rs 1,300 to Rs 2,300 per tonne. Simultaneously, New Delhi abolished the tax on diesel and aviation turbine fuel (ATF), maintaining the absence of windfall taxes on petrol. Previously, windfall taxes of 50 paise per litre and one rupee per litre applied to diesel and ATF, respectively, which have now been eliminated. These revised rates came into effect on January 2, 2024.

The windfall tax will be effective from 15 July onwards.

In its fortnightly review, the government hiked the export duty on diesel while slashing the tax on the domestic production of crude oil.

India has cut all windfall tax on crude oil from 3,500 rupees ($42.56) per tonne effective from Tuesday, according to a government notification. India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax super normal profits of energy companies.

India Business News: NEW DELHI: The government on Friday hiked special additional excise duty (SAED) on crude petroleum to Rs 12,100 per tonne with effect from September 3.