(ET)
Oil Industry body Federation of Indian Petroleum Industry (FIPI) in a letter to the Finance Ministry has appealed for a reduction in Oil Industry Development (IOD) Cess to 8 per cent of the realized price of crude oil from the current 20 per cent.
“FIPI believes that reducing the Cess rate to a reasonable level of 8% of the realized price of crude oil is an absolute necessity for the producing companies in the current price and cost environment. While lower cess rate will entail loss of revenue for the government of India, lower production tax will spur investments leading to additional production and overall increase in taxes to the government in the form of Royalty, Profit Petroleum and Corporate Taxes,” FIPI said in recent letter to Finance Secretary Hashmukh Adhia.
