The Government of India has raised its windfall tax on petroleum crude by 16.66 per cent to ₹7,000 per metric tonne, from ₹6,000 per metric tonne, according to a government notification on Monday, July 15.
The new rates in the policy will be effective from Tuesday, July 16, 2024, according to the government release.
The windfall tax is imposed in the form of a Special Additional Excise Duty (SAED). The export of diesel, petrol and Aviation turbine fuel (ATF) has been kept unchanged, according to a PTI report.
The central government said that it is necessary to raise this in the public interest, as per the government notification.
A windfall tax is a type of surge tax which is imposed on energy companies to prevent them from earning above-average or abnormal profits fueled by the country's economic conditions. This tax is targeted at an industry that is commodity-driven to keep a check on the corporates.
India first charged the windfall tax on profits on July 1, 2022, and the tax rates are reviewed every fortnight on the basis of oil prices for the last two weeks.
