With international oil prices slumping to 12-year low, the government may look at reimposing 5 percent customs duty on crude oil imports to shore up revenue by close to Rs 18,000 crore.
The government had cut customs duty on crude oil imports to zero from 5 percent in June 2011 when rates zoomed to over USD 100 per barrel. But with oil prices hovering at USD 30 a barrel now, the duty may be back, official sources said.
As the government looks to shore up its revenue without hurting economic growth, reimposing import duty on crude oil presents a viable alternative the Budget 2016-17 to be presented on February 29, the sources said. Alongside, customs duty on petroleum products, petrol and diesel may also be increased in equal proportion to duty levied on domestic refiners. Petrol and diesel currently attract 2.5 percent import duty.