| The revenue department is opposed to any mid-term changes in the fiscal regime for the petroleum sector. |
| "We are not in favour of making any changes in the duty regime in the petroleum sector," a top official told Business Standard. |
| The proposal to withdraw the duty-free import facility against advance licence to importers of crude was also not a "workable solution", officials said. |
| The finance ministry lost Rs 1,347 crore from duty-free crude imports during the first half of 2004-05 as about 30 per cent of imported crude were duty-free. |
| "There was a marked increase in the import of crude oil under various exemption schemes for exports. Customs duty amounting to Rs 1,347 crore was forgone because of duty-free imports of 11.58 million tonnes under exemption schemes," petroleum ministry officials said. |
| But for this loss, total revenue from crude would have been Rs 5,826 crore, they added. |
| In order to insulate consumers from the sharp rise in international crude oil prices, the petroleum ministry has been making a case for equitable burden-sharing by consumers, oil companies and the government. |
| The petroleum sector as a whole contributed Rs 10,582.21 crore by way of Customs duty and Rs 40,150.58 crore as excise duty during 2003-04. |
| The share of Customs duty in the gross revenue of the government is 21.77 per cent and that of excise is 44.17 per cent. The Budget this year had introduced a combination of ad-valorem and specific duties for petroleum products. |
| Excise duty on petrol was reduced from 23 per cent to 8 per cent plus Rs 5 per litre, in addition to a special excise duty of Rs 6 per litre and Rs 2 by way of road cess.Excise duty on diesel was retained at 8 per cent plus Rs 1.25 per litre while it was reduced to nil in case of kerosene and LPG. |
| No tinkering with prices |
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