New Delhi, March 1
The Budget has not provided any significant tax incentives to the oil and gas industry. However, the decision to set up a task force for development of large petroleum, chemicals, and petrochemical regions could be seen as a welcome step, according to
Mr Ravi Mahajan, Partner (Global Tax Advisory Services), Ernst & Young.The increase in cess on domestically produced crude oil will have an impact on oil producing companies as the increase will be borne by them.
However, grant of project import benefit to pipeline projects for transportation of crude, products, and natural gas would have a positive impact on the midstream sector, he added.
Mr Nityanand Gupta, Executive Director and Leader, Oil & Gas Practice, PricewaterhouseCoopers,said: "It is disappointing that the Budget has not attempted rationalisation of petroleum product pricing mechanism and taxation structure."