The government has reduced the Special Additional Excise Duty (SAED) or windfall tax on the export of domestically produced crude oil. In its regular review, the government has reduced the windfall tax from Rs 8,400 per metric tonne to Rs 5,700 per metric tonne. This change has come into effect from today i.e. 16th May. The government reviews windfall tax every 15 days. Earlier on May 1, windfall tax was reduced. Earlier on May 1, the government had reduced windfall tax from Rs 9,600 per metric ton to Rs 8,400 per metric ton. Before that the windfall tax was being increased continuously. A month ago, in the April 16 review, the windfall tax was increased from Rs 6,800 per tonne to Rs 9,600 per tonne. Exemption on diesel, petrol and ATF remains intact, on the other hand, the government has decided to keep the export duty on diesel, petrol and Aviation Turbine Fuel (ATF) i.e. the fuel used in aircraft at zero. This means that the discount being given to domestic refiners on the export of diesel, petrol and ATF is going to remain intact in future also. This will continue to benefit those domestic companies which run refineries and sell refined products like diesel, petrol and ATF in markets outside the country.
