India has no plan to cut excise tax on gasoline

India does not plan to reduce the excise tax on gasoline or the import tax on crude oil, Finance Secretary Ashok Chawla said, damping hopes that the government would take such steps to bring down fuel prices and cool inflation. The excise tax on gasoline accounts for 29% of the fuel’s retail price, the government said in July. India imports four-fifths of its crude oil requirement, and there have been demands to reduce import and excise taxes to reduce fuel prices, a major contributor to general inflation. The wholesale price-index based inflation rate was at 7.48% in November, still way above the comfort level of the government and the central bank, despite several fiscal and monetary steps. (December 22, 2010)