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Centre cuts windfall tax on petroleum crude, new rates effective from today

May 16, 2024 1:41 PM IST

India has reduced the windfall tax on petroleum crude from 8,400 rupees per metric ton to 5,700 rupees, effective from May 16.

The tax, which is revised every fortnight, remains unchanged at zero for diesel and aviation turbine fuel, according to a government notification issued on May 15.

This move comes after the government had previously raised the windfall tax on petroleum crude to Rs 9,600 per tonne on April 16, before slashing it to Rs 8,400 per tonne on May 1.

Introduced in July 2022, the windfall tax is levied on unforeseen or unexpectedly high profits in the petroleum industry. It was initiated to regulate private refiners who were allegedly prioritizing overseas sales over domestic distribution to capitalize on robust refining margins.

India first imposed this tax on July 1 last year, joining a growing number of nations that tax the supernormal profit of energy companies.

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Last updated on: 29th May 2024