Government Hikes Windfall Tax On Crude Oil And Diesel

India has increased the windfall tax on crude oil and diesel.

The special additional excise duty on crude petroleum has been raised from Rs 3,200 per tonne to Rs 3,300 per tonne, according to a gazette notification issued on Thursday.

The tax on diesel will be increased from nil to Rs 1.50 per litre. The tax on petrol and aviation turbine fuel will remain nil.

The new tax rates will take effect from Feb. 16, it said.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

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