Deora resists windfall tax on private refiners

Notwithstanding the UPA government8217;s need for Samajwadi Party8217;s crucial support in the trust vote, petroleum minister Murli Deora has resisted a windfall tax on the profits of the refiners but has kept silent on how the crude oil producers could be treated.

In a two-page note sent to the Prime Minister8217;s Office today, Deora8217;s ministry said that a tax on production and refining operations was 8220;a complex issue8221; tied to the government8217;s investment and pricing policies on the sector, and a committee headed by B K Chaturvedi was looking into the possible options of burden sharing among stakeholders.

Samajwadi Party general secretary Amar Singh wrote to Prime Minister Manmohan Singh last week seeking levy of a windfall profit tax of up to 50 per cent on both upstream and downstream operators saying it would generate Rs 100,000 crore. The PMO had asked for a status report from the ministry on Singh8217;s letter.