India exempts rupee payments for Iran oil from hefty taxes – government order
01 Jan 2019

India’s finance ministry has exempted rupee payments made to the National Iranian Oil Co (NIOC) for crude oil imports from a steep withholding tax, according to a government order reviewed by Reuters.

The exemption, put in place December 28 but backdated to November 5, will allow Indian refiners to settle about $1.5 billion of outstanding payments to NIOC.

Those have been building up since Tehran was put under stringent U.S. sanctions in early November.

The two countries on Nov. 2 signed a bilateral agreement to settle oil trades through an Indian government-owned bank, UCO Bank (UCBK.NS), in the Indian currency, which is not freely traded on international markets.

– By Nidhi Verma, Reuters, 31 Dec 2018

Link to Reuters.

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