Wed Sep 18 03:29:07 UTC 2024: ## India Scraps Windfall Tax on Domestic Crude Oil
**New Delhi:** The Indian government has announced the complete elimination of windfall tax on domestically produced crude oil, effective from September 18th. This decision comes after a fortnightly revision, which previously set the tax at ₹1,850 per tonne on August 31st.
The windfall tax, levied as Special Additional Excise Duty (SAED), is imposed on companies making large profits during periods of high energy prices. India first implemented this tax on July 1st, 2022, following a trend among other nations to curb windfall gains in the energy sector.
While the tax on crude oil has been completely removed, the government has retained the SAED on exports of diesel, petrol, and jet fuel (ATF) at zero.
This move is likely to provide relief to domestic oil producers and could potentially lead to lower fuel prices in the Indian market. However, the long-term impact on the energy sector and the government’s revenue remains to be seen.
First Piper 