The Union government may bring domestic natural gas, a key input in fertiliser production, under the ambit of windfall profit tax , making its treatment of the commodity consistent with the way it deals with indigenously produced crude oil and exports of fuel, as it explores various options to meet rising fuel, food and fertiliser subsidy bills, two people aware of the development said.
This is one of the various proposals being considered to mobilise additional resources with the government’s fertiliser subsidy alone expected to surge above ₹2.5 lakh crore in FY23, an over 138% jump from the Budget Estimate (BE), they added, requesting anonymity.
The two people said its possible that, if accepted, the proposal could have a retrospective effect.
