Coordinated action between centre and states on tax reduction in fuel prices needed: Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said that the rising fuel prices have a cost-push factor and a far-reaching impact on the economy.

Speaking at the 185th foundation day of the Bombay Chamber of Commerce and Industry, Das said that there is a need for coordinated action between the centre and state governments to reduce taxes on petrol and diesel prices.

“There is a need for coordinated action between the centre and states because there are inherent taxes levied by both,” the central bank chief said adding that a calibrated reduction in taxes was important.