States get short shrift

Central govt seeks to repair its finances

The central government has raised taxes on fuel at a crucial point as India emerges from the nationwide lockdown imposed in late March to deal with the spread of Covid-19. The government has increased the road cess on petrol and diesel by Rs 8 per litre, and also raised the special additional excise duty by Rs 2 on petrol and by Rs 5 on diesel. The total increase in taxes on diesel is, therefore, Rs 13, and on petrol Rs 10. The attempt is clearly to go some distance towards repairing the government’s stricken finances. The recent prints of the