With taxes and government profit share eating away more than three-fourth of revenue, India’s biggest private oil producer Cairn Oil and Gas has sought a review of taxation system during low oil price regime, saying funding exploration will be difficult in the present scenario.
Ajay Dixit, the chief executive of Vedanta Ltd’s oil and gas arm, said the government levies 20 per cent cess on oil price realised and an equivalent amount has to be paid to the state government in royalty. On top of this, the government is entitled to profit petroleum of 50 per cent of earnings after deducting cost.
