The government has abolished the windfall tax on aviation turbine fuel, crude products, petrol, and diesel after extensive deliberations. This decision is a relief for oil giants like Reliance and ONGC.

The windfall tax, introduced in July 2022, was designed to capture extraordinary gains made by producers amid surging global crude oil prices

Imposed in July 2022, the windfall tax—formally known as Special Additional Excise Duty (SAED)—was introduced during a surge in global crude oil prices triggered by the Russia-Ukraine conflict.

India has scrapped a windfall tax on crude products, aviation turbine fuel, and petrol and diesel exports, a government order said on Monday. Reuters reported on Thursday, citing a federal government source,

Classified as special additional excise duty (SAED), the windfall tax was levied on domestically produced crude oil on July 1, 2022, and was designed to tax the profits a company derives from the energy price rise as a result of the Russia-Ukraine conflict.

Windfall gains tax” referred to cesses imposed on fuel exports and domestic crude oil production to tax super-normal profits of fuel exporters and oil producers. Here is what its removal may signal from the government.

India's finance ministry is evaluating the relevance of windfall tax, a federal government source said on Thursday.

The govt has withdrawn the Road and Infrastructure Cess on petrol and diesel exports to ease financial pressure on the oil sector

The finance ministry has taken a series of steps signaling a shift in response to declining global oil prices and market conditions.

Government scraps windfall profit tax on crude oil and fuel exports due to declining international oil prices.