Updated March 15th, 2024 at 21:08 IST

Govt raises windfall tax on domestic crude oil from to Rs 4900 tonne

This decision, outlined in an official notification, comes against the backdrop of India's initial imposition of windfall profit taxes in July 2022.

Reported by: Business Desk
Crude Oil | Image:Unsplash
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Windfall tax hiked: The union government has announced an increase in the windfall tax from Rs 4,600 to Rs 4,900 per tonnes on domestically produced crude oil effective immediately, the government release said on Friday. This adjustment excludes the SAED on diesel, petrol, and jet fuel exports, which remains untouched at nil.

This decision, outlined in an official notification, comes against the backdrop of India's initial imposition of windfall profit taxes in July 2022. Joining a cohort of nations leveraging such taxes to rein in supernormal profits garnered by energy corporations, India's approach underscores a commitment to equitable economic practices.

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Crucially, these tax rates undergo bi-weekly reviews, contingent upon average oil prices over the preceding fortnight. This process reflects the government's responsiveness to fluctuating global energy prices and their potential impact on domestic economic dynamics.

As India navigates the complexities of the global energy landscape, such policy measures serve as strategic pillars highlights the nation's economic resilience and stability.

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With PTI Inputs

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Published March 15th, 2024 at 21:08 IST