The Central Government has removed the Special Additional Excise Duty (SAED), i.e. windfall tax, imposed on Aviation Turbine Fuel (ATF), Petrol and Diesel. Now refining companies exporting petrol and diesel will not have to pay any windfall tax.
Apart from this, the government has also removed the windfall tax imposed on crude products. Finance Minister Nirmala Sitharaman presented a notification in the Lok Sabha on Monday, in which this information was given.
The government also reduced the windfall tax on crude oil in August Three months ago, the government reduced the windfall tax on exports of domestically produced crude oil. In its regular review, the government has assessed the windfall tax at Rs. 2,100 per metric tonne to Rs. 1,850 per metric ton. This change has come into effect from August 31. The government reviews the windfall tax every 15 days.
Earlier on August 16, the government had raised the windfall tax to 54.34% per metric tonne from Rs. 4,600 reduced to Rs. 2,100 per metric ton. Accordingly, the government reduced the windfall tax by 59.78 percent twice in the month of August. On the other hand, the government has decided to keep export duty zero on diesel, petrol and aviation turbine fuel (ATF) i.e. fuel used in aircraft.
This means that the concession given to domestic refiners on exports of diesel, petrol and ATF will continue in future. This will continue to benefit local companies that operate refineries and sell refined products such as diesel, petrol and ATF to markets outside the country.
When did the government impose the windfall tax? The windfall tax is also revised with fluctuations in Brent crude prices. The central government first imposed the windfall tax on July 1, 2022. There are currently many countries that tax energy companies on huge profits.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
