India cuts all windfall tax on crude

India in July imposed the windfall tax on crude oil producers and levies on exports of gasoline.

Windfall Tax: India has cut all windfall tax on crude oil from 3,500 rupees ($42.56) per tonne effective from Tuesday. (Image credit: Reuters)

The government has slashed the windfall tax on crude oil production to zero from 3,500 rupees per tonne, which became effective today, according to an official notification.
The windfall tax on diesel has been slashed to Rs 0.5 per litre from Rs 1 per litre earlier. There is no windfall tax on petroleum and jet fuel or aviation turbine fuel (ATF). Windfall tax is levied by the government on unexpectedly high profits earned by companies. It was levied in July 2022 as high energy prices had led to high profits for oil producers.

Since then, windfall taxes for crude oil have declined from Rs 23,250 per tonne in July 2022 to Rs 3,500 per tonne as of March 21 this year.

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