Forum Consistently increasing fuel prices – an additional tax on everybody
Consistently increasing fuel prices have pushed inflation up in the country in the past few months. This is having a detrimental effect on financially strained households to the extent that they were cutting back expenditures on essentials such as health and groceries in order to pay for fuel. It is an indirect tax on a commodity consumed by both the rich and the poor, so the relative burden on the poor is more because the tax is not calculated based on the income of the buyer; it's a regressive tax. It is also leading to an inflationary impact by feeding to the cost of everything from food to steel, cement and fertilisers through increased cost of logistics for transportation again, in a way, a kind of additional tax on everybody.
Pramod Bhatt