Breaking: India Reduces Windfall Tax Impacting Crude Oil

According to the Latest Update : Windfall Tax on Crude Oil has been Cut by the Government in order to Balance Profit Margin of Crude Oil Companies.

According to the Exclusive Notification, the Indian Government has ordered to reduce the Windfall tax imposed on Crude Oil. Keeping in mind the increased profit margin of Crude Oil Companies, till April 16, the Government had increased the tax of 1 Ton Crude Oil from Rs 6800 to Rs 9600 per tonne. 

The Exclusive Update on Crude Oil Windfall Tax

According to the Latest Update on this, From Wednesday 1 May 2024, the government has reduced the tax on 1 tonne of crude oil from Rs 1200 to Rs 8400, earlier the tax on 1 tonne of crude oil was Rs 9600. There is No Tax Imposed on Diesel, Petrol, Jet Fuel and ATF Aviation Turbine Fuel. 

Special Additional Excise Duty 

The tax imposed by the government on export of crude oil is taken in the form of Special Additional Excise Duty or SAED. 

Changes in Taxes of Crude Oil 

However, this is not a matter of surprise for Crude Oil Companies because the Government changes the Special Additional Excise Duty every 14 days keeping in mind the Demand or Supply of Crude Oil. This is the backbone for the companies producing Crude Oil. The Government keeps their profit margin in mind and Changes taxes every 14 days.

Additional Benefits for Crude Oil Companies 

In 2022, The companies supplying Crude Oil made huge profits due to the ongoing Russia-Ukraine war that started in February 2022. And in order to bring some part of this profit to the Government Treasury, the Government imposed Windfall on Crude Oil for the first time in July 2022. 

On the one hand, the reason being given is that the Government took this step against the hope of reducing tension in the Middle East.

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