India slashes windfall tax to Rs 5,700 per tonne, effective May 16

The centre on Wednesday slashed windfall gains tax on domestically produced crude to Rs 5,700 per tonne from earlier Rs 8,400 per tonne.

The export duty on petrol diesel and aviation turbine fuel (ATF) will continue to be nil.

The new rates will be effective May 16 2024, Central Board of Indirect Taxes and Customs ( CBIC) said in a late night notification Wednesday.


On May 1, the centre had revised windfall tax on domestically produced crude oil to Rs 8,400 per tonne, down from Rs 9,600 per tonne.

Earlier on April 16, the centre raised the windfall tax on petroleum crude to 9,600 rupees per ton from Rs 6,800, after firming of crude oil prices in the international market.

India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax extraordinary profits of energy companies.

The rates are reviewed every fortnight based on international crude oil prices in the previous two weeks.