Here’s a concise list of budget 2009 points related to the oil and gas industry.
The article has provided summary points on three areas:
1. Budget measures
2. Budget impact, and
3. Company impact
Here are some of the highlights from the article:
# Tax holiday under section 80-IB (9) of the Income Tax Act on the profits from the production or refining of mineral oil, has been extended to natural gas.
#Tax incentives will be provided on capital expenditure on the laying and operating of cross country natural gas, crude or oil pipeline networks for distribution on common carrier principle.
Excise duty on naphtha reduced to 14%.
#Diesel blended with up to 20% bio-diesel fully exempted from excise duty.
# Upstream and midstream segments will benefit from tax incentives, and from the announcement of the national gas grid.
# The downstream segment does not have so much to be happy about, but there will be more visibility on excise duty on diesel and petrol
# Specific companies that stand to benefit are ONGC, RIL, GAIL, IGL and Gujarat Gas