‘Centre should seek revenue at sale point of crude rather than at production stage’

The Centre and State should collect revenue from hydrocarbon production at the sale point of crude, to allow domestic producers leg room to deploy more resources.

“Instead of taxing crude oil production, there should be a tax on the final profit that is earned. Effectively, the government has to have much of the profit from petroleum, which has to be shared. The government share also comprises royalty and cess. If you take all this into account, then the cost of exploration is merely $8 a barrel,” Ajay Kumar Dixit, CEO at Cairn Oil & Gas, said.