Windfall tax on pvt oil cos unfair, says Ambani
Mukesh Ambani is against the idea of windfall taxes on private refiners.
By Piyush Pandey, ET Bureau |
MUMBAI: Mukesh Ambani is against the idea of windfall taxes on private refiners. Answering shareholders��� query at RIL���s 34th AGM, Mr Ambani said: ���We are governed by the production sharing contract (PSC). The higher the price of crude, the more government gets in the form of profit petroleum. Besides, all price increases also go back to the government embedded in tax.���
This was in response to worried shareholders who are concerned about Left demands to impose windfall taxes on oil majors. At least half-a-dozen shareholders asked Mr Ambani about the proposal for windfall taxes on RIL as Democrats have demanded in the US. Left parties in India are demanding a tax on the windfall profits of private refiners to make up for the losses by the state-owned oil firms for selling below cost price.
A recent research report by Merrill Lynch on June 10 said, ���With the subsidy problem in India getting really bad, highly profitable private oil companies like RIL being taxed to fund the subsidy bill cannot be ruled out.���
Reliance is one of India���s largest contributors to the national exchequer, primarily by the way of payment of duties and taxes. During the year, Reliance paid Rs 13,696 crore ($3,414 million) in various forms of taxes and duties. RIL has become the first private sector company in India to cross Rs 15,000 crore ($3,739 million) in net profits.
This was in response to worried shareholders who are concerned about Left demands to impose windfall taxes on oil majors. At least half-a-dozen shareholders asked Mr Ambani about the proposal for windfall taxes on RIL as Democrats have demanded in the US. Left parties in India are demanding a tax on the windfall profits of private refiners to make up for the losses by the state-owned oil firms for selling below cost price.
A recent research report by Merrill Lynch on June 10 said, ���With the subsidy problem in India getting really bad, highly profitable private oil companies like RIL being taxed to fund the subsidy bill cannot be ruled out.���
Reliance is one of India���s largest contributors to the national exchequer, primarily by the way of payment of duties and taxes. During the year, Reliance paid Rs 13,696 crore ($3,414 million) in various forms of taxes and duties. RIL has become the first private sector company in India to cross Rs 15,000 crore ($3,739 million) in net profits.
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