Economics
India Cuts Taxes and Boosts Subsidies to Fight Inflation
- Fertilizer subsidy to increase by additional $14.2 Billion
- Economist says cuts will help cool inflationary pressures
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India announced tax cuts on fuels and boosted its subsidy for crop nutrients to tackle mounting inflationary pressures that have been hitting households, farmers and manufacturers in Asia’s third-biggest economy.
The federal government slashed levies on pump prices of gasoline and diesel, waived import tax on coking coal and increased subsidies on fertilizers as well as cooking gas for the poor, according to a tweet from Finance Minister Nirmala Sitharaman on Saturday. The excise duty on diesel has been reduced by 6 rupees (8 cents) a liter and on gasoline by 8 rupees.