Government Hikes Windfall Tax On Crude Oil

The government 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 4,600 per tonne to Rs 4,900 per tonne, according to a gazette notification issued on Friday.

The taxes on diesel, petrol and aviation turbine fuel will continue to remain nil.

The new tax rates will take effect on March 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.