Ministry of Finance, in its recent notification, has increased the Special Additional Excise Duty (SAED) on the production of Petroleum Crude and export of Aviation Turbine Fuel. Effective from July 15, 2023, the new rate for SAED has been set at Rs. 1,600 per tonne.
The increase in SAED on the production of Petroleum Crude and export of Aviation Turbine Fuel signifies a significant change in the taxation structure. The Ministry of Finance has exercised its powers under the Central Excise Act, 1944 and the Finance Act, 2002 to implement this amendment. The decision to raise the SAED rate to Rs. 1,600 per tonne is driven by the public interest and aims to contribute to the country’s revenue generation.
Conclusion: The increase in Special Additional Excise Duty (SAED) on the production of Petroleum Crude and export of Aviation Turbine Fuel to Rs. 1,600 per tonne from July 15, 2023, marks a significant change in the taxation framework. This amendment will impact the petroleum industry, influencing costs and potentially affecting pricing and profitability. Businesses in the sector need to assess the implications and make necessary adjustments to ensure compliance. The Ministry of Finance’s decision to raise the SAED rate reflects the government’s objective of optimizing revenue generation while supporting the country’s economic growth.
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the
(CENTRAL EXCISE)
Notification No. 23/2023 | dated: 14th July, 2023
G.S.R. 505(E).—In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of the Finance Act, 2002 (20 of 2002), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), notification No. 18/2022-Central Excise, dated the 19th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 584 (E), dated the 19th July, 2022, namely:-
In the said notification, in the Table,-
(i) against S. No. 1, for the entry in column (4), the entry “Rs. 1,600 per tonne” shall be substituted;
2. This notification shall come into force on the 15th day of July, 2023.
[F. No. 354/15/2022-TRU]
AMREETA TITUS, Dy. Secy.
Note: The principal notification No. 18/2022-Central Excise, dated the 19th July, 2022 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 584 (E), dated the 19th July, 2022, and was last amended vide notification No. 22/2023-Central Excise, dated the 15th May, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 366(E), dated the 15th May, 2023.
