India hikes fuel taxes by 4 cents/litre to raise $5.42 billion in annual revenues


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India hikes fuel taxes by 4 cents/litre to raise $5.42 billion in annual revenues

On Saturday, the 14th of March 2020, India, the fifth-largest economy of the world by nominal GDP, had raised the nation’s fuel tax to shore up annual revenues, suggesting an utter desperation towards raising revenues while tax collectors appeared to be failing the Government of Narendra Modi amid the nation’s weakest pace of growth in more than six years, nonetheless the impact could have been caustic given the extent of coronavirus-led financial fallouts which had yet to come, suggested analysts.

In point of fact, as the Indian Government of Narendra Modi of Bhartiya Janata Party, which has been facing off its worst national crisis over a much-disputed citizenship amendment bill that offers citizenship to minorities from the neighbouring countries of six religions but Muslims, had hiked the fuel tax 3 Indian Rupees per litre, which in effect would result in an uptick in gross annual revenue of $5.42 billion or 400 billion Indian Rupees, a senior Government official said to a press agency on Saturday (March 14th) Notably, the taxes on diesel and petrol, which had been one of the largest sources of revenues for the Government of PM Narendra Modi, had tripled India’s annual revenue from fuel since 2014, while combined levies on petrol and diesel had contributed to an 11 per cent of entire tax revenues for the fiscal year that ended on March 2019.