According to a notification issued by the Ministry, Special Additional Tax Duty (SAED), better known as windfall gain tax, on domestically produced crude petroleum will increase to Rs 7100 a tonne from Rs. 4250/tonne. Similarly, the windfall levy on export-bound diesel has been increased to Rs 5.50 a litre from Re 1 litre. For export-bound jet fuel, better known as Aviation Turbine Fuel (ATF), the windfall gain tax will be Rs 2 a litre.
New rates will be effective from August 15. Petrol will continue to be exempted from the windfall gain levy. Change in the levy on domestically produced crude will impact Oil and Natural Gas Corporation (ONGC) and Oil India. It may be noted that SAED does not apply to entities whose annual crude oil production was less than 2 million barrels in the previous financial year.
Hike the windfall levy on diesel and ATF for export will impact on Reliance Industries and Rosneft-backed Nayara Energy as they are primary fuel exporters.
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