India slashes windfall tax on crude to Rs 4,600 per tonne

India slashed windfall rate on domestically produced petroleum crude to Rs 4,600 per tonne from Rs 7,000 per tonne on softening of crude price.

There export duty on petrol, diesel and aviation turbine fuel will continue to be nil.

The new rates will be effective August 1, the central board of indirect taxes and customs (CBIC), said in a statement issued late Wednesday.


In its last revision on July 16, centre had hiked windfall tax on domestically produced crude oil to Rs 7,000 per tonne from 6,000 per tonne.

The tax is levied in the form of Special Additional Excise Duty (SAED).

India imposed a windfall tax on crude oil producers from July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel, as private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally. The government revises the tax fortnightly.