The government has reduced the windfall tax on domestically-produced crude oil from Rs 2,100 per tonne to Rs 1,850 per tonne, effective from 31st day of August 2024. This tax is levied as a Special Additional Excise Duty (SAED). The SAED on the export of diesel, petrol, and aviation turbine fuel (ATF) remains at ‘nil’. The new rates take effect from August 31, 2024, as per Notification No. 21/2024-Central Excise dated August 30, 2024.
This amendment lowers the Special Additional Excise Duty (Windfall Tax) on petroleum crude production to Rs. 1,850 per tonne. India first introduced windfall profit taxes on July 1, 2022, aligning with other countries that tax the supernormal profits of energy companies. The tax rates are reviewed fortnightly based on the average oil prices of the previous two weeks.
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi
Notification No. 21/2024-Central Excise | Dated: 30th August, 2024
G.S.R. 525(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), 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 SNo. 1, for the entry in column (4), the entry “Rs. 1850 per tonne” shall be substituted; 2. This notification shall come into force on the 31st day of August, 2024.
[F. No. 354/15/2022-TRU]
AMREETA TIT , D . 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. 20/2024-Central Excise, dated the 16th August, 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 503(E), dated the 16th August, 2024.
