Softer global oil price cuts windfall tax collections

India's windfall tax mop-up from crude oil and auto fuels has slipped due to a combination of lower energy prices and falling domestic production, official data showed.

- Gireesh Chandra Prasad 

Collections from the windfall tax, levied on domestic sale of crude oil to refineries and on export of petrol and diesel, fell 9% from a year earlier to ₹1.5 trillion in the April-October period.

This tax is levied as special additional excise duty and revised nearly twice a month.

During April-October, the highest rate of windfall tax on crude oil was 12,100 a tonne, levied in the fortnight starting 30 September.

This is a steep drop from ₹23,250 levied during 1-20 July, 2022, before it was lowered to 17,000 a tonne.

On Monday, the government kept windfall tax at a nominal 1,300 a tonne, showed a Central Board of Indirect Taxes and Customs (CBIC) order.