Mon Dec 02 10:59:15 UTC 2024: ## India Scraps Windfall Tax on Fuel Exports

**New Delhi, [Date]** – The Indian government has announced the immediate termination of the windfall tax on petrol, diesel, and aviation turbine fuel (ATF) exports. The decision, confirmed by CNBC-TV18, follows two months of internal discussions and coincides with a period of stabilized global crude oil prices.

The Ministry of Petroleum and Natural Gas had previously petitioned the finance ministry for the tax’s removal. The tax, a Special Additional Excise Duty (SAED), was initially implemented in July 2022 to address concerns about oil refiners prioritizing lucrative exports over domestic fuel supplies.

While the tax on domestically produced crude oil was reduced to zero in September, the export levy on petrol, diesel, and ATF remained until today’s announcement. The SAED, adjusted bi-weekly based on average oil prices, was last revised on August 31st. This latest move marks a complete withdrawal of the export tax.

India’s imposition of windfall profit taxes last July mirrored similar measures adopted by other countries aiming to curb excessive energy company profits during periods of high prices. The government’s decision to rescind the export tax suggests a reassessment of the need for this revenue stream in the current market conditions.

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