The oil sector can hope to get some relief from Budget 2019-20 with the government considering a proposal to halve the cess on domestic crude oil to encourage exploration activity and allow explorers to step up investment in search for new hydrocarbon reserves, official sources said on Tuesday.
Cess on domestic crude is currently levied at the rate of 20 per cent of the value of oil. This may come down to 10 per cent if a proposal given by industry and the Petroleum Ministry is accepted by the Finance Ministry for inclusion in this year’s budget,
According to the sources, while there is strong support for halving the cess, the exact quantum of cut is still to be worked out. The reduction in the levy has huge revenue implications as state-run ONGC alone pays cess in excess of Rs 10,000 crore annually. Read More
Latest posts by Business-Standard.com (see all)
- India-Nepal cross border pipeline work completed, ready for operation - June 19, 2019
- Delhi Dy CM shows power tariff mirror to UP govt - June 18, 2019
- Wind capacity addition likely to improve to 3.5-4.0 GW in FY20: Icra - June 18, 2019