Special Additional Excise Duty on crude will now be Rs 5,050 per tonne, while on diesel it is Rs 7.5 per litre
Sources told CNBC-TV18 that the government expects to collect Rs 25,000 crore this financial year from windfall gains tax. (Representative Image)
The government has revised its windfall gains tax with effect from Saturday, February 4, 2023, as per a circular from the Ministry of Finance. The Centre has adjusted its Special Additional Excise Duty or SAED on crude petroleum by Rs 3,150 per tonne, and diesel and air turbine fuel (ATF) by Rs 2.5 per litre each, it said.
As per the revisions, SAED on crude petroleum will increase to Rs 5,050/tonne, from the old Rs 1,900/tonne; while tax on diesel will increase to Rs 7.5/litre from Rs 5/litre. Further, SAED on ATF will now increase to Rs 6/litre from Rs 3.5/litre, while SAED on petrol continues to be nil.
Sources told CNBC-TV18 that the government expects to collect Rs 25,000 crore this financial year from windfall gains tax. They added that the government has not prepared any estimates for the collections next year as levies are dynamic and subject to fortnightly changes.
India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies. At that time, export duties of Rs 6/litre (412 per barrel) each were levied on petrol and ATF, and Rs 13/litre ($ 26 a barrel) on diesel. A Rs 23,250/tonne ($ 40/barrel) windfall profit tax on domestic crude production was also levied.
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