This decision of the government will have a direct impact on oil producing companies. Due to the change in windfall tax, oil companies will have to pay more tax on domestically produced crude oil.
The government has made changes in the windfall tax. The Narendra Modi government at the Center has changed the windfall tax on domestic crude oil production to simplify the tax system and attract investors. The revised tax is now Rs 6,400 per tonne. Let me tell you, the windfall tax is imposed by the government on any industry when they start earning more profits than expected.
The government has increased the Special Additional Excise Duty (SAED) on crude petroleum to Rs 6,400 per tonne. Earlier it was zero. However, the new hike announced by the government will not affect petroleum and aviation turbine fuel. As in the past, the Special Additional Excise Duty will remain zero.
Apart from this, the government has also decided to reduce the export duty on diesel. According to the new order of the Central Government, SAED on diesel has been reduced by Rs 0.50 per liter to zero now. This decision of the government will have a direct impact on oil producing companies.
Due to the change in windfall tax, oil companies will have to pay more tax on domestically produced crude oil. However, only the manufacturing sector will get the benefit of reduction in export duty on diesel. Let me tell you, last year the government imposed windfall tax for the first time during the war between Russia and Ukraine. The government changes the windfall tax every two weeks.
