EUR/USD 1.15669
-0.095%
Gold 4214.10
0.079%
Oil 83.594
-1.807%
USD/JPY 160.187
0.141%
GBP/USD 1.34002
-0.114%
GBP/JPY 214.659
0.036%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The French presidential palace stated that President Macrons attendance at the Franco-Italian summit will help deepen cooperation between the two countries in areas such as energy and defense.Britains new defense secretary: Investment plans are still being finalized.On June 12th, Morgan Stanley economist Bruna Skarica noted in a report that UK monthly GDP appears to be benefiting again from strong performance in the white-collar services sector, particularly the information and communications technology (ICT) industry. She pointed out that output in this sector is currently up 6.7% year-on-year, and has grown by 45.4% since the fourth quarter of 2019, while the overall economy has only grown by 6% during the same period. "It seems far from a coincidence that the sector most vulnerable to the rapid spread of artificial intelligence is simultaneously driving GDP growth and productivity gains," Skarica added. Given that the Bank of England stated last year that structural productivity growth in the UK was negative, the bank should comment further on this this year.On June 12th, HSBC analysts noted in a report that the US dollar is currently trading below levels implied by market expectations of US interest rates. They stated that the dollars reaction has been limited as recent market expectations have shifted from anticipated rate cuts to possible rate hikes. They believe this may reflect the loose financial environment in the US and market expectations for a resolution to the Middle East conflict. They added that the dollar needs clear stimulus from monetary policy. If the Federal Reserve fails to support rate hike expectations at next weeks meeting, the dollar "could be in trouble."On June 12th, analysts at Nomura Securities stated in a report that the Bank of England is likely to raise interest rates by 25 basis points in July to avoid the risk of a second wave of inflation. However, with inflation risks diminishing, they believe the Bank of England is likely to resume rate cuts in 2027. LSEG data shows that investors expect a 34% probability of a rate hike by the Bank of England in July.

Indian Government Reduces Tax on Fuel, Key Commodities To Battle Inflation

Charlie Brooks

May 23, 2022 09:52

F2.png


India on Saturday announced a series of modifications to the tax system charged on vital commodities in an attempt to buffer customers from rising prices amid high inflation.


Finance Minister Nirmala Sitharaman announced a drop in excise duty on petrol by 8 rupees ($0.1028) per liter, and 6 rupees per liter on diesel.


The new tax policy on fuel and diesel could result in a loss of around 1 trillion Indian rupees to the government in annual revenue due to the decreased collection, she stated in a series of tweets.


The government also reduced the import duty on anthracite, PCI coal and coking coal in an attempt to cut raw material costs for local market demand.


The latest measures will be effective from May 22, the government stated in a notification after the announcement by Sitharaman, who also asked state governments to follow suit with comparable reductions on fuel costs keeping in line with federal plans.


A liter of petrol currently costs 105.41 rupees, while diesel is at 96.67 rupees in New Delhi.


The government would also pay a supplementary subsidy of 200 rupees per cooking gas cylinder to approximately 90 million people under a welfare scheme launched for women below the poverty line.


The subsidy will have an annual income implication of about 61 billion Indian rupees, Sitharaman said.


"Prime Minister Narendra Modi has expressly requested all arms of the government to work with sensitivity and give relief to the common man," she said.


The government was also attempting to minimize taxes on raw materials for plastic items to lower down the cost of final products.


Experts said the recent steps will likely increase fiscal problems and create uncertainties about the government attaining its deficit target of 6.4 percent of GDP for 2022-23.



But inflation has become a huge concern for Modi's government ahead of elections to many Indian state assemblies this year.


A substantial surge in inflation meant input costs rose for businesses.


The rise forced the central bank to hike interest rates during an unexpected policy meeting this month.


"Today's decisions, notably the one relating to a major drop in fuel and diesel prices, will positively impact many industries, offer relief to our folks," Modi wrote on Twitter (NYSE:TWTR) (NYSE:TWTR). "It is always people first for us!"

Suggestion