Wed Sep 18 03:29:08 UTC 2024: ## India Scraps Windfall Tax on Domestically Produced Crude Oil

**New Delhi, September 17:** In a move likely to benefit domestic oil producers, the Indian government has scrapped the windfall tax on domestically produced crude oil, effective from September 18. The decision comes after a significant decline in global crude oil prices.

The windfall tax, levied as Special Additional Excise Duty (SAED), was imposed in July 2022 to curb excessive profits from oil companies during a period of high oil prices. It was revised every 15 days based on average oil prices over the preceding two weeks.

While the tax on domestic crude oil is now zero, the government has maintained the ‘nil’ SAED on exports of diesel, petrol, and aviation fuel. This marks the second time the windfall tax on crude oil has been completely removed since its imposition. Previously, it was reduced to nil on April 4, 2023.

The decision to scrap the windfall tax comes amid recent volatility in oil prices. While global crude prices experienced a significant drop last week, they have rebounded slightly this week due to supply chain issues caused by Hurricane Francine in the US Gulf of Mexico.

The Oil Ministry and the Department of Revenue had been in discussions regarding the windfall tax, which the Department of Revenue currently manages.

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