Expectations. Govt’s windfall tax collection estimated at ₹25,000 crore in FY23

The government expects to collect around ₹25,000 crore from windfall tax, or Special Additional Excise Duty (SAED), from the production of crude oil and the export of diesel, petrol, and Aviation Turbine Fuel (ATF) in FY23, ending March, Parliament was informed on Monday.

“The collection of SAED for FY23 is estimated at the level of ₹25,000 crore from the production of crude oil, export of Petrol, Diesel, and Aviation Turbine Fuel (ATF),” Minister of State for Petroleum & Natural Gas Rameswar Teli said in response to a query in Rajya Sabha.

Windfall tax, which came into effect from July 1, 2022, is revised fortnightly and is imposed on oil companies making windfall, or exceptionally high profits on account of high global crude oil prices since February-March 2022.

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The Minister also informed that the standalone Profit after Tax (PAT) of the national oil companies from all activities including the sale of crude oil up to September 30, 2023, in FY23 includes ₹28,032 crore by Oil & Natural Gas Corporation (ONGC) and ₹3,276 crore by Oil India (OIL).

“The SAED for domestic crude production has been revised from ₹10,200 per tonne (from November 17 to December 1, 2022) to ₹4,900 a tonne (from December 2 to December 15) to ₹1,700 per tonne (from December 16, 2022 to January 2, 2023) to ₹2,100 a tonne (from January 3 to January 16, 2023) to ₹1,900 per tonne (from January 17 to February 3, 2023) to ₹5,050 a tonne (from February 4, 2023 till date),” Teli said.

The SAED is not applicable to entities whose annual crude oil production is less than 2 million barrels in the previous financial year, he added.

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