The government has officially withdrawn the windfall gains tax—imposed as a Special Additional Excise Duty (SAED) on crude oil production and exports of diesel, petrol, and aviation turbine fuel (ATF)—after nearly two-and-a-half years.

India has scrapped a windfall tax on crude products, aviation turbine fuel, and petrol and diesel exports, a government order said on Monday.

Classified as special additional excise duty (SAED), the windfall tax was levied on domestically produced crude oil on July 1, 2022, and was designed to tax the profits a company derives from the energy price rise as a result of the Russia-Ukraine conflict.

The finance ministry has taken a series of steps signaling a shift in response to declining global oil prices and market conditions.

Windfall gains tax” referred to cesses imposed on fuel exports and domestic crude oil production to tax super-normal profits of fuel exporters and oil producers. Here is what its removal may signal from the government.

Government scraps windfall profit tax on crude oil and fuel exports due to declining international oil prices.

The Indian government has abolished the windfall profit tax on domestically-produced crude oil and fuel exports, benefiting companies like ONGC, Oil I

Imposed in July 2022, the windfall tax is a special levy on domestic crude oil production, introduced after rising global crude prices, to capture revenue from windfall gains made by producers

The government has revoked the windfall tax on crude oil and fuel exports, responding to industry demands amid falling international oil prices.