Petro tax review ordered to verify OMC loss figures
fe Bureau: New Delhi, Dec 15 2012, 01:28 IST
export price) of the fuel in calculations, although they do not import fuel. Instead, they extract finished products at own refineries from crude oil, on which they have paid far less import duty.
Oil companies, however, do not agree with this argument. They say that both domestic cooking gas and kerosene sold through public distribution system do not attract any customs duty but they have to pay Rs 50 a tonne NCCD on crude oil imports. That is, the import price used to calculate the marketing losses on these two products do not have customs duty component although they pay some taxes on crude. The higher tax element on the under-recovery of petrol and diesel offsets the absence of tax in the case of LPG and kerosene, which are also derived from tax-paid crude.
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