India Inc, traders and exporters hailed the Center’s decision to reduce excise duties on motor fuels and urged states to follow suit to provide more relief to consumers.
They said the reduction in prices would reduce inflation due to lower transport costs.
CII welcomes the government’s decision to reduce excise duties on fuel, which will help lower inflation levels. The government’s swift action shows its intention to reduce the burden on the common man, in addition to reducing the cost of inputs for many sectors,” said CII Chairman Sanjiv Bajaj.
He expressed hope that following the Center, state governments will also respond in the same way, bringing further relief.
Assocham’s general secretary, Deepak Sood, tweeted expressing his gratitude to the government “for the anti-inflationary measures”, including the reduction of excise duties on petrol and diesel. He said these measures “will have a positive spiraling impact” on controlling inflation.
The Confederation of All Indian Traders (CAIT) said that the reduction in fuel prices will lead to a reduction in the prices of everyday items by at least 10% on average and that similarly the prices of other commodities base should also go down as the transportation of raw materials will also be cheaper now.
The traders’ body has also urged states to follow in the footsteps of the central government and reduce value added tax (VAT) rates to provide substantial inflation relief to the public.
PHDCCI industrial chamber president Pradeep Multani said “at this stage, states should also offer to reduce excise duties in the event of price escalation.”
He added that the efforts of state governments will go a long way in helping India’s growth to remain intact.
Welcoming the decision to reduce central excise duties on petrol and diesel, the reduction of import duties on steel and plastic raw materials and the increase of export duties on mineral ore intermediates iron and steel, the chairman of the exporters body FIEO A Sakthivel said that these measures will bring lower domestic prices of key inputs, thereby mitigating inflation.
It will also add to the competitiveness of manufacturing and exports and further boost the country’s value-added exports, he said.
On Sunday, the price of petrol was reduced by Rs 8.69 per liter and diesel by Rs 7.05 per liter following the government’s reduction of excise duties on motor fuels to relieve consumers beaten down by high fuel prices, which also pushed inflation to a record high.
The government on Saturday announced a record cut of Rs 8 per liter in excise duty on petrol and Rs 6 per liter on diesel.
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