The Good, the Not-so-good and the Ugly in Govt’s Oil Tax Cut

The Good, the Not-so-good and the Ugly in Govt’s Oil Tax Cut

In a commentary earlier this week (Why no tax relief on oil imports is Modi’s smart move), we had argued that the government should not, despite bad headlines on oil prices, cut the Centre’s fuel taxes, and ask instead state governments to reduce their ad valorem taxes on petrol and diesel. Just an hour back, Finance Minister Arun Jaitley announced that while the Centre will advice states to cut their ad valorem taxes to the effect of Rs 2.50, it will also be effect a Rs 1.50 cut in Central taxes and ask oil marketing companies (OMCs) to absorb another Rs 1 cut. The cumulative impact, if states follow through, will be Rs 5 cut in retail prices.

Why Narendra Modi may have to blink on oil prices

Why Narendra Modi may have to blink on oil prices

India sees no respite from skyrocketing petrol and diesel prices. Petrol price in Mumbai breached Rs 90 per litre mark yesterday. It is close to Rs 83 in Delhi. Yet the Narendra Modi government has not given any indication of a tax cut.

Why government is not cutting petrol, diesel prices

Why government is not cutting petrol, diesel prices

Petrol and diesel prices have gone up every day since August 16. The prices of petrol and diesel are at an all-time high across the country. In Delhi, petrol sells today, September 17 at Rs 82.06 per litre 15 paise up from yesterday.

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