MUMBAI: India on Saturday announced a series of changes to the tax structure levied on crucial commodities in a bid to insulate consumers from rising prices amid high inflation.
Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 rupees ($0.1028) per liter, and 6 rupees per liter on diesel.
The new tax regime on petrol and diesel could result in a loss of about 1 trillion Indian rupees to the government in annual revenue due to the lower collection, she said in a series of tweets.
The government also removed the import duty on anthracite, PCI coal and coking coal in a bid to reduce raw material costs for local market demand.
The latest measures will be effective from May 22, the government said in a notification after the announcement by Sitharaman, who also urged state governments to follow suit with similar reductions on fuel prices keeping in line with federal plans.
India planning to spend additional $26 billion to fight inflation
The Indian government is considering spending an additional 2 trillion rupees ($26 billion) in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation, two government officials told Reuters.
The new measures will be double the 1 trillion rupees hit government revenues could take from tax cuts on petrol and diesel the finance minister announced on Saturday, both the officials said.
India’s retail inflation rose to an eight-year high in April, while wholesale inflation rose to at least a 17-year high, posing a major headache for Prime Minister Narendra Modi’s government ahead of elections to several state assemblies this year.
“We are fully focussed on bringing down inflation. The impact of Ukraine crisis was worse than anyone’s imagination,” one official, who did not want to be named, said.
Jet Airways to fly again
India’s Jet Airways said on Friday the country’s aviation regulator has cleared it to resume operation of commercial flights.
Once India’s biggest private carrier, Jet stopped flying in April 2019 after running out of cash, owing billions to lenders and leaving thousands without jobs.
Jet said the grant of an air operator certificate by the Directorate General of Civil Aviation “was the final step in a comprehensive regulatory and compliance process involving several procedural checks for the airline’s operational readiness.”
The airline had said in June that the National Company Law Tribunal approved a resolution plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan.
Apple looks to boost production in India - WSJ
Apple Inc. has told some of its contract manufacturers that it wants to increase production outside China, the Wall Street Journal reported, citing people familiar with the matter.
India and Vietnam, which are already sites of Apple production, are among the countries short-listed by the company as alternatives, the report added.
Apple last month forecast bigger supply problems as COVID-19 lockdowns slowed production and demand in China.
The report said that Apple is citing China’s strict anti-Covid policy and other reasons for its decision.
Apple declined to comment to WSJ and couldn’t be immediately reached by Reuters on Saturday.
(With input from Reuters)
