In an unprecedented move,oil regulator PNGRB has levied a 'turnover' tax on the revenues companies will earn from retailing CNG and natural gas in cities,a move that the industry sees as exceeding its jurisdiction. The Petroleum and Natural Gas Regulatory Board (PNGRB),which as per its enacting legislation has powers to levy fee,has levied a minimum tax of Rs 2 crore per annum on turnover that companies like GAIL and Reliance Industries earn from selling CNG to automobiles and piped natural gas to households and industries. As per the Gazette notification,PNGRB has asked entities to pay Rs 2 crore for turnover of up to Rs 20,000 crore under the head 'other charges'. For turnover of up to Rs 50,000 crore it has levied Rs 2 crore plus 0.008 per cent of revenues in excess of Rs 20,000 crore. For turnover up to Rs 1,00,000 crore it will charge Rs 4.4 crore plus 0.005 per cent of revenues more than Rs 50,000 crore. Besides,0.2 per cent of capital expenditure during construction period will be payable by entities,it said. Petrofed,a body of oil and gas companies,has opposed the move saying "other charges are similar to levy of turnover tax or sharing of revenue which are not provided for under the PNGRB Act."
