Oil hunt tax sop on agenda - Calcutta Telegraph

The government plans to offer tax incentives in the next round of bidding for oil and gas blocks, to be launched later this month, to attract global firms.

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At present, oil companies get a seven-year tax waiver on their income for selling crude from a block. However, there is no such benefit for natural gas production. An exception was made for the eighth round of bidding that was held last year. At present, oil companies get a seven-year tax waiver on their income for selling crude from a block. However, there is no such benefit for natural gas production. An exception was made for the eighth round of bidding that was held last year. “Efforts are on to make Nelp (New Exploration Licensing Policy) more attractive and bring parity between oil and gas. We had taken up the issue with the finance ministry and they have agreed in-principle to the suggestion. The E&P firms are likely to get tax benefits as suggested in the direct taxes code,” a senior oil ministry official said.

Oil hunt tax sop on agenda - Calcutta Telegraph