India hikes windfall tax on domestically produced petroleum crude. The Special Additional Excise Duty (SAED) on crude petroleum increased from Rs 1600 per tonne to Rs 4250 per tonne.
The SAED on diesel increased from zero to Rs 1 per litre. These new rates will be effective from August 1, 2023. However, this move will not impact windfall tax on petrol and aviation turbine fuel.
In July 2023, the government raised the windfall tax on petroleum crude from zero to 1,600 Indian rupees per tonne. The Special Additional Excise Duty (SAED) on the production of crude oil and the export of petroleum products was levied from July 1, 2022.
In an effort to generate additional revenue from the petroleum sector, the government has hiked windfall taxes, which will have its implications felt on the fuel prices to impact businesses and consumers in the country.
News source: India Today
