India: Prime Minister Urges Tax Cuts on Imported LNG
|
|
|
|
Thursday, 20 October 2011 |
Prime Minister Manmohan Singh has urged states in India to reduce taxes on both natural gas and LNG. Writing to the Empowered Committee of State Finance Ministers, Singh said that India’s states should give both fuels ‘declared goods’ status, reducing VAT from 12% to 5% in most states.
Sushil Modi, chairman of the committee, told reporters that it would discuss the proposal at its next meeting. Efforts to cut VAT on these items would benefit RIL, Gail and other firms, but may be stymied by already-softening growth in local VAT collections. “VAT collections from sectors, such as automobiles, construction, steel and cement, had slowed,” said Modi, who added that the committee would be seeking greater compensation for a centrally mandated reduction in sales taxes.
PetrolWorld 20102011
|
