The Indian government has announced a slight increase in the windfall tax levied on domestically produced crude oil, from Rs. 4350 per tonne to Rs. 4400 per tonne. Meanwhile, the export duty on diesel has been reduced to Rs. 0.5 per litre, and the export duty on aviation turbine fuel (ATF) has been eliminated altogether.
The export of petrol will remain duty-free. These revised duty rates will come into effect from March 4.
On July 1, 2022, India had implemented windfall profit taxes on the export of petrol and aviation turbine fuel (ATF) at a rate of ₹6 per litre, and on diesel at a rate of ₹13 per litre. In addition, a windfall profit tax of Rs 23,250 per tonne was imposed on domestic crude production.
The export duty rates are adjusted every two weeks based on international crude oil prices.
In a statement to parliament on Monday, the government indicated that it expects to collect Rs 25,000 crore in revenue for the current fiscal year from the Special Additional Excise Duty (SAED) imposed on the windfall tax for domestic crude production and the export of petrol, diesel, and ATF.
The notification stated, “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 S. No. 1, for the entry in column (4), the entry “Rs. 4,400 per tonne” shall be substituted; (ii) against S. No. 2, for the entry in column (4), the entry “Nil” shall be substituted.”
Further, “—In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of 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. 04/2022-Central Excise, dated the 30th June, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 492(E), dated the 30th June, 2022, namely:- In the said notification, in the Table, against S. No. 2, for the entry in column (4), the entry “Rs.0.50 per litre” shall be substituted.”
And for the Aviation Turbine Fuel (ATF), “—In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 112 of Finance Act, 2018 (13 of 2018), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 10/2022-Central Excise, dated the 30th June, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 498(E), dated the 30th June, 2022, namely:- In the said notification, in the Table, against S. No. 2, for the entry in column (4), the entry “Nil” shall be substituted.”
Further, with regard to the applicability, it was stated that this notification shall come into force on the 4th day of March, 2023.
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