Fuel taxes in India cut as prices reach all time peaks
By: Braden Gerow, Opinion Editor, The Pawprint
The taxes on fuel and diesel were cut in India in an effort to “spur the overall economic cycle.” This decision was made in response to the rising fuel prices caused by the increased cost of crude oil, and has reduced the price on petrol by 5 rupees ($0.07 USD), and on diesel by 10 rupees.
According to BBC, the government also said “The reduction in excise duty on petrol and diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes.” Following that announcement, at least ten Indian states ruled that they would go even farther in the reduction of the tax on fuel, and cut them by an even further 7 rupees.
The announcement does have some relation to Diwali, as the festivities usually lead to increases in consumer spending. Additionally, the tax cut is expected to help ease pressure on manufacturers and farmers caused by increased overhead costs.
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