NEW DELHI (Reuters) – India on Saturday increased taxes on petrol and diesel in an attempt to increase government revenue at a time when tax collections have fallen amid the weakest economic growth in over six years.
The excise duty on the fuels was hiked by 3 rupees per liter, the government said in a gazette notification.
The rise is expected to increase revenue by up to 400 billion Indian rupees ($5.42 billion), a senior government official told Reuters.
Taxes on petrol and diesel, which account for more than a third of retail fuel prices, are one of the biggest sources of income for the government.
Reporting by Sudarshan Varadhan and Aftab Ahmed