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Reports of tax proposal to offset OMCs' losses baseless:FinMin
May, 31st 2008

The Finance Ministry on Wednesday said 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.

"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 yesterday 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 no body from the Ministry had briefed the media," the statement said.

 
 
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