India has witnessed sharp rise in fuel prices due to consistent rise in fuel taxes. The reasons cited for higher taxation is that Indian government needs funds to COVID19 related crises. However, higher fuel prices are inflationary and adverse for economic growth in the short run. We are now costlier than all those nations with whom we compete for FDI, FII & Exports. We are costlier than our neighborhood nations as well.  May be it is time we look at our fuel tax policy and stop imposing ‘sin taxes” on this essential commodity.

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By Sameer Rastogi

18 years of experience, PG in Finance and has delivered Wealth Management lectures at IIM Lucknow, IBS Gurgaon and IIPM Delhi. Contributed to various newspapers. Strength – Application of Economic fundamentals to Investment

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