The government for the second straight fortnight has decided the keep the windfall tax on domestically produced crude at zero. The rate will remain unchanged for products exported such as petrol, diesel and aviation turbine fuel as the Indian basket of crude remained below the $75 per barrel mark.
With the drop in global prices, the Centre in mid-May had cut the windfall tax on domestically produced crude to zero from Rs 4,100 per tonne. It had kept unchanged the windfall tax on petrol, diesel and aviation turbine fuel at zero.
The government has slashed the special additional excise duty (SAED) on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) to nil from Rs 4,100 per tonne with effect from May 16, the notification said.
Finance ministry officials said as there has been no change in the SAED, a fresh notification is not being issued. The earlier notification shall continue till a fresh review is done.
The May 16 windfall tax notification reduced the special additional excise duty on petroleum crude to nil from Rs 4,100/tonne. It averaged $74.98 a barrel in May and so far in June, the average has managed to be below $75/bbl.
The government has kept $75 as the trigger for the windfall tax levy, below which the tax is nil. India’s crude oil basket has been consistently averaging below $75/bbl. The government reviews windfall tax levies every fortnight.
