In order to streamline the tax system and promote investments, the government has modified the windfall tax on domestic crude oil production. As per the updated regulations, the tax rate has been established at ₹6,400 per tonne.
The Special Additional Excise Duty (SAED) on crude petroleum has been raised by the government from zero to ₹6,400 per tonne. However, SAED on petrol and Aviation Turbine Fuel (ATF) will remain unchanged at zero.
Additionally, the government has abolished the export duty on diesel, leading to a reduction in SAED on diesel from ₹0.50 per litre to zero.
The government’s recently introduced windfall tax policy on domestically produced crude oil is expected to boost its revenue. As a result of this policy, oil companies will be obligated to pay an increased tax on the sale of domestically produced crude oil. On the other hand, the abolition of the export duty on diesel is likely to alleviate the manufacturing sector’s reliance on diesel for power generation and transportation.