NEW DELHI: India's Finance Minister Nirmala Sitharaman on Saturday announced a reduction of taxes on petrol and diesel to fight inflation and keep prices of essential items in check.
The government is expected to take a hit of about 1 trillion Indian rupees on its annual revenue due to the move, she said, urging the state governments to follow suit with similar reductions keeping in line with the federal government's plan. The government will also give a subsidy of 200 rupees per cooking gas cylinder to over 90 million beneficiaries under a welfare scheme introduced for women below the poverty line.The government will also reduce import duty on raw materials for plastic products, iron, and steel, hoping to lower down the cost of final products, Sitharaman added.