The Indian government on Wednesday reduced taxes (excise duty) on petrol and diesel in a bid to improve consumer sentiment, as Asia’s third-largest economy recovers from the damages by coronavirus.
The excise duty on petrol has been reduced by Rs 5 per litre, and that on diesel by Rs 10 per litre, the government said in a statement.The tax relief comes on the eve of the Diwali.The reduced prices will come into effect from November 4.
“The reduction in excise duty on diesel will be double that of petrol and will come as a boost to the farmers during the upcoming Rabi season,” the government said. This is the highest-ever reduction in excise duty and rolls back a part of the Rs 13 and Rs 16 per litre increase in taxes on petrol and diesel effected earlier.The revision had raised excise duty by 65 per cent on petrol from Rs 19.98 to Rs 32.98 a litre and 79 per cent on diesel from Rs 15.83 to Rs 28.35.
Rising prices of petrol and diesel was creating inflationary pressure on the economy, as a result of a global upsurge in crude oil rates.
