Mon Dec 02 12:44:15 UTC 2024: ## India Scraps Windfall Tax on Fuel Exports
**New Delhi, [Date]** – The Indian government has eliminated the windfall tax on crude oil, aviation turbine fuel (ATF), petrol, and diesel exports, effective immediately. This decision, following two months of deliberation, is expected to significantly boost the profits of oil companies like Reliance and ONGC by improving their refining margins. The government has also removed the Road and Infrastructure Cess (RIC) on petrol and diesel exports.
The windfall tax, a special additional excise duty (SAED), was initially imposed in July 2022 to capitalize on unexpectedly high profits in the oil sector driven by global events. The tax rate was adjusted every fortnight based on international crude oil prices. However, with recent declines in global oil prices, the government’s revenue from the windfall tax diminished, leading to its complete removal. The Ministry of Finance confirmed the cessation of the tax in a recent notification.
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