New Delhi : This Diwali has bought some amount of relief in common man’s monthly budget Indian Government on Wednesday evening have announced to reduce the excise duty on Petrol and Diesel. Excise duty on Petrol has been reduced by Rs 5 while there is a Rs 10 deduction on excise duty of Diesel. The order will come in effect from November 4.
Ministry of finance has said that there is no energy shortage in the country and that commodities such as petrol & diesel are available adequately. The statement says, “Govt of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol & diesel are available adequately to meet our requirements.”
Minister of Finance termed the excise cut ‘boost in consumption and said, “To give a further fillip to the economy, Govt of India has decided to significantly reduce excise duty on diesel & petrol. The reduction will also boost consumption & keep inflation low, thus helping the poor & middle classes.”
According to a press release by the Ministry of Finance, 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. States urged to reduce VAT on petrol & diesel to give relief to consumers.
As per the release, The reduction in excise duty on diesel will be double that of petrol. The Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase and the massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season.
In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel had increased in recent weeks exerting inflationary pressure. The world has also seen shortages and increased prices of all forms of energy.
Driven by the enterprising ability of India’s aspirational population, the Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown. All sectors of the economy – be it manufacturing, services, or agriculture – are experiencing significant upward economic activity.
Further, the release mentioned, Today’s decision is expected to further spur the overall economic cycle. States are also urged to commensurately reduce VAT on Petrol and diesel to give relief to consumers.
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