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Budget likely to give major concession for LNG imports
New Delhi, Feb 25: Budget is likely to give major fiscal concession for LNG imports while introducing specific excise duty rates for petroleum products and cutting customs duty on crude oil.
New Delhi, Feb 25: Budget is likely to give major fiscal concession for LNG imports while introducing specific excise duty rates for petroleum products and cutting customs duty on crude oil.
Infrastructure status for LNG import projects and 10-year
tax holiday are likely to be announced in the budget to be
presented by finance minister Jaswant Singh on Friday.
However, the petroleum ministry demand for reduction of import duty on LNG to nil from 5 per cent to make the imported fuel competitive with domestic natural gas, was unlikely to be met, official sources said.
Excise duty on project imports for gassification plants is also likely to be announced.
Finance ministry was likely to do away with the three- tier ad valorem duty structure on petroleum products, which increases the volatility of their prices, they said.
Introduction of specific excise duty, a long-standing demand of petroleum ministry, and a possible cut in customs duty on crude oil would provide cushion against volatilities in the international crude oil prices.
Duties on capital goods for refinery expansion and new grassroot refinery projects are also likely to be waived off.
Sources said the forthcoming budget was also likely to see a reduction in subsidies on kerosene and LPG. Government announced last year that the subsidies on these two products would be gradually reduced and finally removed in the next two-three years. It has been estimated that the LPG subsidies may be reduced by Rs 20 a cylinder and by about re one a litre of kerosene.
Bureau Report
However, the petroleum ministry demand for reduction of import duty on LNG to nil from 5 per cent to make the imported fuel competitive with domestic natural gas, was unlikely to be met, official sources said.
Excise duty on project imports for gassification plants is also likely to be announced.
Finance ministry was likely to do away with the three- tier ad valorem duty structure on petroleum products, which increases the volatility of their prices, they said.
Introduction of specific excise duty, a long-standing demand of petroleum ministry, and a possible cut in customs duty on crude oil would provide cushion against volatilities in the international crude oil prices.
Duties on capital goods for refinery expansion and new grassroot refinery projects are also likely to be waived off.
Sources said the forthcoming budget was also likely to see a reduction in subsidies on kerosene and LPG. Government announced last year that the subsidies on these two products would be gradually reduced and finally removed in the next two-three years. It has been estimated that the LPG subsidies may be reduced by Rs 20 a cylinder and by about re one a litre of kerosene.
Bureau Report