FM Likely To Reinstate Tax Holiday On Oil, Gas Production

The finance ministry is likely to continue providing a seven-year income-tax holiday on production of oil and gas. The continuation of the tax holiday will come as a relief to oil and gas companies, which have already infused huge money in exploration of hydrocarbons. It will also assist the petroleum ministry, which has been promising the tax holiday while marketing the auction of oil and gas block under the New Exploration and Licensing Policy (Nelp). Petroleum Minister Murli Deora met Finance Minister P Chidambaram. The proposal to remove the income tax holiday had put in question the auction of oil and gas blocks under Nelp VII.