Govt lifts hefty tax on rupee payments for Iran oil
Govt of India officially exempted hefty tax on payments to National Iranian Oil Co (NIOC) for settling part of its oil purchases in Indian rupees. Now oil payments to Iran in rupees will be exempted from a 40% tax in order to make the payments hassle free which have been hit by western sanctions against Tehran.
- Earlier, India and Iran had agreed to settle 45% of oil trade in Rupees, which are not smoothly traded on international markets.
- Iran intended to use rupees to pay for imports from India but refiners were not agree to make payments due to hefty tax.