The central government reduced the windfall tax on crude petroleum on Wednesday. The special additional excise duty on crude petroleum has been cut from Rs 7,000 per tonne to Rs 4,600 per tonne, according to a gazette notification. The government had last hiked the windfall tax on July 15.
The new tax rates will take effect on Aug. 1, it said. The taxes on diesel, petrol and aviation turbine fuel will continue to remain nil.
Every two weeks, the tax rates are reviewed based on the average oil prices from the previous two weeks.
India first imposed windfall profit taxes on July 2022, joining a growing number of nations that tax the supernormal profits of energy companies.
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