Windfall tax on domestic crude oil reduces to zero. Relief for petrol, diesel buyers ahead. The government slashes windfall tax on domestic crude oil to zero. It will be effective from September 18, 2024.
India introduced the windfall tax on July 1, 2022 aiming at curbing profits from high refining margins. These taxes are special taxes levied by governments on companies or individuals that have unexpectedly gained substantial profits due to unforeseen circumstances.
According to petroleum secretary Pankaj Jain, with the removal of windfall tax, oil marketing companies (OMCs) may reduce the petrol and diesel price which may anticipate to ease the economical pressure on common citizens. He released his statement regarding this on last week.
The government reviews and adjusts the windfall tax on every two weeks based on the average oil prices over the previous two weeks. which is known as Special Additional Excise Duty (SAED). Domestic crude oil reduces to zero, as of august 31 with the last modification the windfall tax on crude petroleum was at Rs 1,850 per tonne. SAED on petrol diesel and jet fuel stands at ‘nil’. According to official source the new rates will be effective from September 18, 2024.