The Finance Ministry of India has reduced the special additional excise duty (SAED) on crude petroleum to Rs 9,050/tonne, effective October 18. The windfall tax on domestically produced crude oil was previously fixed at Rs 12,100 per tonne. Additionally, the duty on diesel exports will be reduced from Rs 5 per litre to Rs 4 per litre, while the tariff on jet fuel will be lowered from Rs 2.5/litre to Rs 1/litre.
The government, which revises tax rates fortnightly based on oil price fluctuations, has made no change in the windfall tax on petrol, diesel, and aviation turbine fuel.
Sumit Singhania, Partner, Deloitte India said, withdrawal of windfall tax, except the reduced levy on diesel, is certainly a cheer for oil producing companies.