The Indian government has revised the windfall tax on domestic crude oil production to Rs. 6400 per tonne. The move is part of the government's effort to rationalize the tax structure in the petroleum sector and promote investment in the industry.

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Additionally, the government has increased the Special Additional Excise Duty (SAED) on crude petroleum from nil to Rs. 6400 per tonne. However, the SAED on petrol and Aviation Turbine Fuel (ATF) will remain unchanged at nil.

In another significant move, the government has decided to remove the export duty on diesel. As a result, the SAED on diesel will reduce from Rs. 0.50 per litre to nil.

The revision of the windfall tax on crude oil production is expected to generate additional revenue for the government. The move is expected to impact oil companies, as they will now have to pay a higher tax on the sale of crude oil in the domestic market.

The removal of export duty on diesel is expected to provide relief to the manufacturing sector, which relies heavily on diesel for power generation and transportation. The move will also improve the competitiveness of Indian exporters, as they will now be able to sell diesel at a more competitive price in the global market.

Overall, the revision of the tax structure in the petroleum sector is expected to have a positive impact on the Indian economy. The move is expected to boost investment in the industry, generate additional revenue for the government, and provide relief to the manufacturing sector.

Also read: Macro data, quarterly results, crude, global trade trends to guide markets this week: Analysts

(Edited by : Pradeep John)

First Published:Apr 18, 2023 11:43 PM IST