New Delhi, May 28 : The Finance Ministry on Wednesday rejected reports about certain new tax proposals to offset oil-marketing companies' under recoveries due to rising global crude prices
"Attention of the Ministry of Finance has been drawn to the reports appearing in a section of media following a routine meeting between the Minister of Petroleum and Natural Gas and the Finance Minister. The reports are largely speculative and in particular, reports about certain new tax proposals are totally baseless," an official statement said.
After the meeting on Tuesday, reports in media had stated that the government is considering a cess on income tax to fund oil subsidy. It may also slash custom and excise duty, besides increasing price of petrol and diesel and issuing oil bonds, the reports had said.
"Ministry of Finance points out that nobody from the Ministry had briefed the media," the statement said.