Government To Abolish Windfall Tax On Crude Oil Output

The government has decreased the windfall tax on the production of crude oil from Rs 3,500 per tonne to zero effective from April 03, 2023, according to a government notice published by Reuters.

India had levied windfall profit taxes earlier in FY22. At the time, the export tax on petrol, ATF and diesel was Rs 6 per litre and Rs 13 per litre, respectively & windfall tax on domestic oil production was Rs 23,250 per tonne.

India's main fuel exporters Reliance Industries, which has the largest single-location oil refinery complex in the world in Gujarat, and Rosneft-backed Nayara Energy are expected to benefit from this policy shift.