The revenue department is opposed to any mid-term changes in the fiscal regime for the petroleum sector.
"We are not in favour of making any changes in the duty regime in the petroleum sector," a top official told Business Standard.
The proposal to withdraw the duty-free import facility against advance licence to importers of crude was also not a 'workable solution', officials said.
The finance ministry lost Rs 1,347 crore (Rs 13.47 billion) from duty-free crude imports during the first half of 2004-05 as about 30 per cent of imported crude were duty-free.
"There was a marked increase in the import of crude oil under various exemption schemes for exports. Customs duty amounting to Rs 1,347 crore was forgone because of duty-free imports of 11.58 million tonnes under exemption schemes," petroleum ministry officials said.
But for this loss, total revenue from crude would have been Rs 5,826 crore (Rs 58.26 billion), they added.
In order to insulate consumers from the sharp rise in international crude oil prices, the petroleum ministry has been making a case for equitable burden-sharing by consumers, oil companies and the government.
The petroleum sector as a whole contributed Rs 10,582.21 crore (Rs 105.822 billion) by way of Customs duty and Rs 40,150.58 crore (Rs 401.505 billion) as excise duty during 2003-04.
The share of Customs duty in the gross revenue of the government is 21.77 per cent and that of excise is 44.17 per cent. The Budget this year had introduced a combination of ad-valorem and specific duties for petroleum products.
Excise duty on petrol was reduced from 23 per cent to 8 per cent plus Rs 5 per litre, in addition to a special excise duty of Rs 6 per litre and Rs 2 by way of road cess.Excise duty on diesel was retained at 8 per cent plus Rs 1.25 per litre while it was reduced to nil in case of kerosene and LPG.
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