India scraps windfall tax on petroleum crude

Synopsis The Indian government has announced the removal of the windfall tax on crude oil, effective from September 18. Initially imposed in July 2022, the tax was aimed at curbing profits from high refining margins. This is the second time the tax has been reduced to zero, following a significant drop in global crude oil prices. The government of India on Tuesday announced the scrapping of windfall tax on crude oil from Rs 1,850 per tonne. This will be effective from September 18, said a government notification. India had imposed windfall tax since July 19, 2022. This is the second time since the tax was imposed that it is reduced to nil. Last time on April 4, 2023, the centre had reduced it to zero. Windfall tax in India India imposed a windfall tax on crude oil producers from July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel, as private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally. The Union government, on August 31, slashed windfall tax on domestically produced crude oil to Rs 1,850 per tonne from previous Rs 2,100 per tonne.