Government Hikes Windfall Tax On Crude Oil

India has increased the windfall tax on crude oil while simultaneously reducing the taxes imposed on diesel and aviation turbine fuel, as per an official government notification.

The government announced an elevation in the windfall tax on petroleum crude oil, raising it from Rs 1,300 to Rs 2,300 per tonne.

The government removed the tax of Rs 0.5 per litre on diesel and also removed a Rs 1 per litre windfall tax on aviation fuel.

The new tax rates will take effect on Jan 2., the notification said.

India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax the supernormal profit of energy companies.