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Policy & Regulation

Pressure mounts on India to reform LNG taxes

India’s government is under pressure to change its tax system for LNG, which is more heavily taxed than other commodities such as coal India’s government is under pressure to change its tax system for LNG, which is more heavily taxed than other commodities such as coal.
By Damon Evans 31 October 2019 Asia Pacific / LNG 0 34743
India's Kochi LNG terminal. (Petronet LNG)

The Federation of Indian Petroleum Industry (FIPI) is pushing the government for tax reforms that would make LNG more competitive in the world’s fastest-growing energy market. The reforms could soon be approved and, if implemented, would improve the affordability of gas and help bolster demand.

LNG is heavily taxed in India, unlike other commodities such as coal. But the oppressive tax system for LNG could be overhauled “within the next few months”, R.K. Malhotra, director general of the FIPI, told delegates at the...