Petro tax review ordered to verify OMC loss figures
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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