Petroleum industry Friday demanded abolition of 5 per cent customs duty on imported LNG and a uniform 4 per cent sales tax on LNG throughout the country to promote its use.
"Tax breaks are essential to promote use of LNG and meet the huge gas deficit in the country," Petroleum Federation of India, an association of public and private sector oil firms, said in its pre-budget memorandum submitted to Petroleum Minister Ram Naik here.
PetroFed also demanded removal of tax disparity between crude oil and naphtha. While crude oil carries customs duty, import of naphtha is exempted from any duty.
It also demanded infrastructure status to pipelines, specific excise duty on petroleum products and keeping the duty differential between crude oil and products at 10 per cent.