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INDIA EXTENDS SUBSIDY ON FUEL, GIVES TAX BREAKS FOR PIPELINES.
NEW DELHI, March 1 Asia Pulse - Finance Minister P Chidambaram Wednesday extended Government subsidy on domestic LPG and kerosene for an indefinite period, while providing the much-awaited tax breaks for cross-country natural gas pipelines.
Chidambaram, in his Budget for 2007-08, also proposed reduction in ad-valorem excise duty rates on petrol and diesel to six per cent from eight per cent to provide relief to oil companies reling under high international oil prices.
The Budget provides for Rs 26.5 billion for subsiding LPG and kerosene, at the rate of Rs 22.58 per 14.2 kg domestic LPG cylinder and Rs 0.82 litre of kerosene sold through PDS.
As per the five-year phase-out plan, subsidies on the two cooking fuel were to end on March 31, 2007 but the Finance Minister by providing an amount almost equal to the one provided in 2006-07 has extended the subsidy regime.
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Source: HighBeam Research, INDIA EXTENDS SUBSIDY ON FUEL, GIVES TAX BREAKS FOR PIPELINES.