India Inc., traders and exporters welcomed the Centre’s move to reduce excise duty on auto fuel and called on the states to follow suit to provide more relief to consumers.
They said inflation would come down as transportation costs were lower.
“The CII welcomes the government’s move to reduce excise duty on fuel, which will help reduce inflation. The government’s move is intended to reduce input costs in many sectors as well as reduce the burden on the general public, “said CII President Sanjeev Bajaj.
He hoped that following the Center, the state governments would respond similarly, bringing more relief.
Assocham Secretary-General Deepak Sood tweeted gratitude to the government for “anti-inflationary measures” including reduction of excise duty on petrol and diesel. He said the measures would “create a positive spiral effect” in controlling inflation.
The Confederation of All India Traders (CAIT) has said that the reduction in fuel prices will reduce the prices of everyday commodities by an average of at least 10 per cent and will also reduce the prices of other commodities as raw materials will be transported. Cheap now.
The traders’ association urged the states to follow in the footsteps of the central government and reduce the rate of value added tax (VAT) to provide adequate relief to the people from inflation.
“At the moment, states should also come forward to reduce excise duty wherever prices go up,” said Pradeep Multani, president of industry chamber PHDCCI.
He added that the efforts of the state governments would go a long way in helping keep India’s growth intact.
Welcoming the decision to reduce central excise duty on petrol and diesel, reduce import duty on raw materials for steel and plastics and increase export duty on iron ore and steel, Shaktivel, president of the exporters’ association FIEO, said the measures would bring down the price of key inputs. Goes.
It will also increase the competitiveness of the manufacturing and export sectors and further boost value-added exports from the country, he said.
On Sunday, petrol prices were reduced by Rs 8.69 per liter and diesel by Rs 7.05 per liter to provide relief to consumers affected by high fuel prices after the government reduced excise duty on auto fuel, pushing inflation to record highs.
On Saturday, the government announced a record reduction of Rs 8 per liter on petrol and Rs 6 per liter on diesel.