The government may introduce tax cuts to tackle inflation
Days after PM Narendra Modi's Independence Day speech at the Red Fort, where he addressed the long-standing problem of inflation, reports suggest that the government may reduce tax on petrol prices to fight the problem.
In order to reduce inflation, which has been a drawn-out issue since last year, the Modi government is also planning to ease import tarrifs in addition to the tax cuts on fuel.
A plan to reallocate funds of about ₹1 lakh crore from the budgets of various ministries is being considered, to contain surging food and fuel prices. The decision for the same will be taken by the Prime Minister soon.
Inflation has been a constant problem, especially for households, since April last year, with increase in prices of regular items like rice, wheat and most recently, tomatoes.
PM Modi also addressed the issue of unemployment and the recent problems in Manipur in his tenth address at the Red Fort, and the last one before the general election next year.
Report by Saumya Singh
Graphics by Sonali Sharma
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