Implications of the Union Budget 2017 on the Oil & Gas Sector - Delhi


Implications of the Union Budget 2017 on the Oil & Gas Sector - Delhi

Continuing with the tradition of organising an annual event every year, post announcement of Union Budget, FIPI, erstwhile Petrofed conducted a workshop on post budget analysis and its impact on the Oil and gas sector in knowledge partnership with Deloitte on February 02, 2017 at New Delhi.

At the onset Mr. Rajiv Bahl, Director (Finance, Taxation & Legal), FIPI welcomed the guests and impressed upon them as to how the implications of the budget are expected to reflect on the oil and gas sector. Dr. R.K. Malhotra, Director General, FIPI in his opening remarks while highlighting the policy decisions implicating the oil and gas sector in the latest Union budget, also stated the recommendations that were submitted by FIPI on behalf of the oil and gas industry. While expressing delight on the policy decisions with regard to LPG, it was also highlighted that clarity on inclusion of all petroleum products under the field of GST was still awaited. The integration of oil companies into a 'Major' and the far reaching impact of the same was also stressed upon.

Dr. Laveesh Bhandari, Director, Indicus Foundation gave his insight on the current state of the Indian economy. While he clearly stated that global turbulence has always had a knowing impact on the Indian economy, he clearly stated that fundamentals of Indian economy need to be strengthened. While expressing concern on the law and order situation of the country which acts as an impediment to economic development, he emphasised the need to simplify the tax laws such as GST to facilitate the steady transition from informal economy to a formal one.

Mr. Hemal Zobalia, Partner, Deloitte Haskins & Sells LLP started the budget analysis session and set the context of the program. The direct tax implications were discussed by Mr. Hemal Zobalia, Partner & Mr. Sujit Parakh, Partner, Deloitte Haskins & Sells LLP and the indirect tax implications were discussed by Mr. Atul Gupta, Senior Director, Deloitte Haskins & Sells LLP.

A panel discussion constituting Mr. R.K. Garg, Director (Finance), Petronet LNG; Mr. Kartikeya Dube, Director – Tax, BP; Mr. R.K. Sethi, Executive Director (CF), IOCL and Ms Gauri Jauhar, Director, Consulting & Research at IHS Markit was held and moderated by Hemal Zobalia. The policy decisions stated in the Union Budget were discussed at length with the panellists deliberating on the efficiencies as well as challenges concerning the creation of a 'mammoth.' Also discussed were the recommendations submitted to the government for reduction of import duty on LNG from 5% to zero percent and how the reduction to 2.5 percent is a step in the right direction.