Government Hikes Windfall Tax On Crude Oil, Cuts Tax On Diesel

The centre has increased the windfall tax on crude oil and decreased the windfall tax on diesel.

The special additional excise duty on crude petroleum has been raised from Rs 33200 per tonne to Rs 4,600 per tonne, according to a gazette notification issued on Thursday.

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

The new tax rates will take effect on Mar. 1, 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.