India Faces Rs 1.3 Lakh Crore Loss

The Centre's move to cut excise duties and impose a windfall tax on diesel and aviation fuel will reduce government revenue by about Rs 1.3 lakh crore if the West Asia conflict keeps crude prices elevated for a year. Ratings agencies ICRA and CareEdge say the Economic Stabilisation Fund and higher OMC break-even levels (around $106/bbl) will partly cushion impacts, while states may gain about Rs 25,000 crore in VAT.