Levy of SAED from July 1 accompanied by a mechanism of fortnightly review: Oil Ministry

New Delhi [India], September 20 (ANI): Ministry of Petroleum and Natural Gas (MoP&NG) on Tuesday clarified that the levy of Special Additional Excise Duty (SAED) from day one of July this year was accompanied by the government's announcement of a mechanism of fortnightly review.
The clarification came responding to some media reports which state that 'Oil Ministry seeks windfall tax review'. The reports, quoting the Ministry of Petroleum and Natural Gas' letter of August 2022, have stated that the Ministry has sought changes in the levy of SAED.
"These reports are misleading. It is clarified that the levy of SAED from July 1, 2022, was accompanied by the Government's announcement of a mechanism of fortnightly review," said the MoP&NG in a statement.
Six such reviews have already taken place since the SAED levy, adding, "In the meanwhile, from time to time, Government has received representations and requests for clarifications in respect of modalities of the levy, rates, determination of liability".
"These necessitate consultations and exchange of information between different Ministries of Government including the Ministry of Finance and Ministry of Petroleum and Natural Gas. Such consultations are an ongoing process and are used to inform successive reviews," said the Ministry.
"Selective leakage of any such communication, including one which is six weeks old, without knowledge of context, background or communications made previously or thereafter gives a misleading impression and provides an incomplete picture. Such mischievous reporting is totally uncalled for and raises doubts about the motive behind such reporting."
By its very nature, the Ministry further said, SAED (or windfall tax, as it is commonly referred to) represents a response to a dynamic situation.
"Recalibration is therefore required and the design provides for the same based on market inputs and feedback."
Crude oil prices have witnessed extreme volatility in 2022, said the Ministry, adding "this has resulted in very high prices for end consumers at petrol pumps."
"Countries around the world have implemented various measures to mitigate the adverse impacts on consumers."
"Windfall tax" is one of the measures which helps in dealing with the situation. The extent of its applicability, reference period, amount of cess, tax and duty, the incidence of tax liability, and mechanism for review are integral to such a tax. (ANI)