The government, with a touch of empathy, has decided to increase the windfall tax on domestically produced crude oil, raising it from Rs 1,700 per tonne to Rs 3,200 per tonne starting this Saturday. This tax is implemented in the form of Special Additional Excise Duty (SAED).
In a move to support citizens, the SAED on exports of diesel, petrol, and aviation fuel (ATF) has been maintained at zero, as highlighted in an official notification. These new rates, effective from February 3, mark a commitment to fair taxation.
Notably, India, in a landmark decision on July 1, 2022, joined the league of nations imposing a windfall tax on energy companies’ extraordinary profits. This step reflects a compassionate approach to economic policies.
Furthermore, the tax rates undergo regular review every fortnight, aligning with the average oil prices observed over the preceding two weeks. This dynamic strategy ensures a balanced and responsive taxation system in the ever-changing economic landscape.