Centre slashes windfall tax on diesel, removes it on ATF
Windfall tax is levied by governments when an industry unexpectedly earns large profits — primarily due to an unprecedented event.
The Centre, in the latest review, has hiked the windfall profit tax levied on crude petroleum to Rs 4,400/tonne from Rs 4,350/tonne.
The special additional excise duty on diesel has been reduced to Rs 0.5/litre from Rs 2.5 per litre while it has been slashed to nil on ATF (Aviation Turbine Fuel).
Petrol continues to have zero special additional excise duty.
The latest review of SAED will be effective from March 4.
Windfall tax is levied by governments when an industry unexpectedly earns large profits — primarily due to an unprecedented event.
The windfall profit tax on domestically produced crude oil and export of fuel is likely to give about Rs 25,000 crore in the current fiscal ending March 31.
The Centre had first imposed taxes on windfall profits of energy companies on July 1, 2022, in the wake of soaring prices of crude oil. It had imposed export duties of ₹6 per litre on petrol and ATF and ₹13 a litre on diesel.
A Rs 23,250 per tonne windfall profit tax on domestic crude production was levied as well.
Read Official Notification No. 10/2023-Central Excise, Notification No. 11/2023-Central Excise, and Notification No. 12/2023-Central Excise