The Ministry of Petroleum and Natural Gas on Tuesday issued a clarification on reports claiming that the government is seeking to change the Special Supplementary Excise Duty (SAED) levy on petroleum companies. The ministry indicated that the SAED levy from July 1, 2022 was accompanied by the government’s announcement of a bi-monthly review mechanism and that six such reviews have already taken place since the SAED levy. .
“The selective leaking of any such communication, including one dating back six weeks, without knowledge of the context, background or communications made before or after, gives a misleading impression and paints an incomplete picture. Such malicious reporting is totally unwarranted and raises doubts as to the motive behind such reporting,” he said.
Crude oil prices have experienced extreme volatility in 2022, leading to very high prices for end consumers at the gas pump.
The ministry mentioned that the “exceptional tax” is one of the measures that help deal with the situation. The scope of its applicability, the reference period, the amount of tax/fee/duty, the incidence of liability to tax, the review mechanism are an integral part of such a tax.
Windfall taxes are levied on windfall profits of energy companies. India first imposed a windfall tax on July 1, but as international oil prices have since cooled, profit margins for oil producers and refiners have eroded.
Windfall tax was raised to Rs 7 per liter from Rs 5 per liter on diesel export last month. The government had also introduced a levy of Rs 2 per liter on ATF exports during last month’s fortnightly review.
Also Read: Windfall Tax Hike on Diesel Exports, Domestic Crude Cuts
Also Read: Government Reduces Exceptional Crude Oil Tax from Rs 13,000 to Rs 10,500 per Ton