With a view to keep the growth on track, the petroleum ministry has recently requested the finance ministry to rework on the direct tax codes with a view to ensure that the oil and gas producers in the country can continue to benefit from the tax breaks.

It is to be mentioned here that a letter sent to the revenue secretary Sunil Mitra by the petroleum secretary S. Sundareshan has said that at present the exploration and production industry is benefiting from both i. e. the seven year tax holiday and also the allowance of capex.

It may be noted here that assesses can avail either of the two in DTC and not both which is against the principle of protection of existing benefits. Moreover, the petroleum ministry has also requested the North Block to delete the provision 318 s (i) in DTC which sends out a message of computation of profits considering that hydrocarbons producers have to be as required by the provisions of DTC.

Nabin Ballodia, director, KPMG said that the move is expected to be on the line to ensure that the existing and committed benefits are on track.