Government should exempt LNG from 5% import duty: panel.

New Delhi: A high-level government panel has proposed that the government should exempt liquefied natural gas (LNG) from the 5% import duty.

The panel tasked with developing India’s auto fuel vision and policy headed by former Planning Commission member Saumitra Chaudhuri, in its report, said, “For many years now, the import duty on crude petroleum is nil, while previously it had been 5% and before that 10%. The import duty on LNG—except when directly imported for power generation—remains at 5%.”

“There is no logic for the separate treatment on account of import duty as between crude petroleum and LNG. They go towards similar uses and LNG is in many ways a preferable substitute for liquid fuels,” the report, which was made public on Friday, said.

The panel also proposed sharing the burden of stricter green fuel norms with consumers by imposing a special fuel upgradation cess of 75 paise per litre of diesel and petrol, as reported by Mint on 4 June.

India plans to introduce the stricter Bharat Stage V emission norms by 2020 to curb growing air pollution.

In addition, the committee has recommended closing the 75 paisa price gap between Stage III and IV fuel by imposing a high sulphur cess, as reported by Mint on 12 May.

Going forward, the plan is to implement Bharat Stage VI standards by 2024, which will require automobile manufacturers to put in place technological improvements.

Source : livemint.com