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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