Is income tax holiday over for natural gas?

March 10th, 2008 - 7:09 pm ICT by admin  

New Delhi, March 10 (IANS) Is the finance ministry withdrawing the existing seven-year income tax holiday in exploration and production of natural gas? The ministry of petroleum and natural gas wants to know. The national budget for 2008-09 says the income tax holiday will continue for ‘mineral oil’, referring to crude oil. There is no reference to natural gas in the relevant document.

The petroleum ministry wants the finance ministry to clarify whether it wants to cut out natural gas from among the sectors entitled to fiscal sops in the hydrocarbon exploration and production sector.

“We have sent a letter to the finance ministry to seek a clarification,” A.K. Jain, joint secretary in the petroleum and natural gas ministry, told a Confederation of Indian Industry (CII) meeting here.

Jain’s remarks follow the government’s decision to extend the date for submission of bids for exploration license of 57 oil and gas blocks by two weeks to April 25.

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