The government on Friday revised the Windfall Gains tax levies that will come into effect from March 4, 2023. The announcement made by the Ministry of Finance is expected to bring significant changes to the petroleum industry.
As per the new revisions, the Special Additional Excise Duty (SAED) on crude petroleum will be increased from Rs. 4350/Tonne to Rs. 4400/Tonne. This will come as a setback for the petroleum industry as it will lead to increased prices for crude petroleum.
However, in a relief for the consumers, the SAED on diesel will be reduced from Rs. 2.50/litre (Rs 1+Rs 1.50 RIC) to Rs. 0.5/Litre (Rs 0.5+ Nil RIC).
The SAED on petrol will continue at Nil, which means that there will be no change in the prices of petrol.
In another relief for the aviation industry, the SAED on Aviation Turbine Fuel (ATF) will be reduced from Rs. 1.5/Litre to Nil. This reduction is expected to bring down the operational costs for airlines and help them recover from the losses suffered during the pandemic.
First Published: Mar 3, 2023 11:56 PM IST
