India’s oil ministry seeks windfall tax review; asks for exemption for some oil blocks

India’s oil ministry has sought exemption for some oil fields from windfall profit tax levied by the central government on domestically produced crude and has asked for a review of the new levy, which it believes is against the principle of fiscal stability provided in contracts for finding and producing oil.

In a letter dated August 12, reviewed by PTI, the oil ministry has sought the exemption from the two-and-half-month old levy for the oil field or blocks which were bid out to companies under Production Sharing Contract (PSC) and Revenue Sharing Contract (RSC).