NEW DELHI, Nov 3 (Reuters) – The Indian government on Wednesday reduced taxes on petrol and diesel in a bid to improve consumer sentiment, as Asia’s third-largest economy recovers from the shocks of severe lockdowns to control the spread of the coronavirus.
The excise duty on petrol has been reduced by 5 rupees ($0.0671) per litre, and that on diesel by 10 rupees ($0.1342) per litre, the government said in a statement.
The tax relief comes on the eve of the Hindu festival of Diwali, which marks the beginning of a busy festive season in India, typically marked by increased consumer spending.
The federal government will face a revenue loss of between 550 billion rupees ($7.38 billion) and 600 billion rupees from the cut in taxes, a government source told Reuters, declining to be named as the detail is not public.
Recent months have witnessed a…