Mumbai: After flagging concerns surrounding the inflationary impact of the high indirect taxes on fuels for the second time, RBI Governor Shaktikanta Das on Friday said it is now for the government to take a decision on the issue, which is pinching common citizens.
Das, who had earlier flagged the issue publicly for the second consecutive time in as many policy announcements, said that the government has acted on other supply side issues like pulses and edible oils.
It can be noted that the government had hiked duties and cesses on fuels like petrol and diesel to record levels after a sharp dip in global crude prices last year which resulted in higher revenue collections.
With the rebound in prices, the government has not moved to cut the taxes due to which Indians are paying over Rs 100 for a litre of petrol and diesel is also close to the three-digit mark.
“On this issue (indirect taxes on fuels) as well as on several other issues where the action lies in the domain of the government, there is constant engagement between the RBI and the government. We voice all our suggestions and concerns from time to time,” Das told reporters in the customary post-policy interaction.
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