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No oil cess on income tax: FM
May, 31st 2008

The Finance Ministry on Wednesday said that reports about certain new tax proposals to offset oil marketing companies' under recoveries due to rising global crude prices are totally "baseless" and "speculative" in nature. (   Watch   )

"Attention of the Ministry of Finance has been drawn to the reports appearing in a section of media following a routine meeting between the Minister of Petroleum and Natural Gas and the Finance Minister. The reports are largely speculative and in particular, reports about certain new tax proposals are totally baseless," an official statement said.

Various reports in a section of the media after the meeting on Tuesday had said that Government is mulling a cess on income tax to fund oil subsidy. The government may also reduce customs and excise duties, besides increasing prices of petrol and diesel and issuing oil bonds, the reports had said.

"Ministry of Finance points out that nobody from the Ministry had briefed the media," the statement said.

 
 
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