Budget wish-list: Oil producers seek tax sops to raise domestic output

Domestic hydrocarbon producers have sought various tax sops and the restoration of some duty exemptions in their budget wish-list, even as the government has expressed concerns over the stagnant output.

The Association of oil and gas operators (AOGO) which include state-run Oil and Natural Gas Corporation, Oil India and major private producers such as Cairn India, Reliance Industries, BP and Shell India’s subsidiary BG Exploration and Production also sought the restoration of the ‘investment allowance’ system, which made tax incentives available on capital expenditure made on plants and machineries in the past. The system was discontinued since FY18.