States resort to tax hikes

The Telegraph
Dated May 06, 2020

Several states, including Delhi, Tamil Nadu and Haryana, have hiked the taxes on liquor and fuel as they struggle to shore up revenues choked by the coronavirus-induced lockdown, though analysts considered the measures as low-hanging fruits, easily achievable without much fuss.
Price of petrol in the national capital has increased by Rs 1.67 to Rs 71.26 per litre and diesel Rs 7.10 to Rs 69.29 per litre, compared with May 4. The hike was triggered by the Delhi government’s decision to raise value-added tax (VAT) on petrol and diesel to 30 per cent each. VAT on petrol was previously 27 per cent and on diesel was much lower at 16.75 per cent.
The Delhi government’s move came a day after it had slapped a 70 per cent “special corona fee” on the sale of liquor in the city. The fee has been imposed on the maximum retail price (MRP) of liquor bottles. The new rate will be applicable from May 5.
Rajat Bose, partner, Shardul Amarchand Mangaldas & Co, said the tax on liquor was a low hanging fruit at the moment for state governments to garner revenue which has otherwise dried up.
“Given the massive queues in front of liquor shops since yesterday (Monday), the state governments can hope for a robust collection of taxes in the immediate future which can be channelised for funding the growing demand for testing and health care services during these times,” the tax analyst said.
M.S. Mani, partner, Deloitte India, said the hike in VAT rates on petroleum products indicated the urgent need for states to increase revenues in a situation where industrial activity has been almost at a standstill and GST revenues are at an all time low. “The increase in the VAT could lead to higher revenues for states once the demand for petroleum products, which is now depressed, becomes normal when the lockdown is lifted, ” he said.
Saloni Roy, senior director, Deloitte India, said the Delhi government earns a bulk of its revenue from the sale of petroleum and alcohol. “New levies that have been introduced are essentially measures to make up losses they have incurred and also curb crowds at alcohol stores.” 
Reference:

Comments

Post a Comment

Popular posts from this blog

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017 arrested his
Read more

J&K Cricket Board Scam: Chargesheet Filed Against Farooq Abdullah, 3 Others By CBI

OUTLOOK July 16, 2018 The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah and three others. The CBI on Monday filed a chargesheet against former Jammu and Kashmir chief minister Farooq Abdullah and three others in a special court in Srinagar in connection with alleged irregularities and misappropriation of funds in the Jammu and Kashmir Cricket Association. After the fall of the Peoples Democratic Party (PDP) and the BJP government, this is the biggest development that has taken place in the state. The National Conference has not reacted to the chargesheet so far. The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah, the then president of JKCA, Md Saleem Khan - the then general secretary, Ahsan Ahmad Mirza - the then treasuer and Bashir Ahmad Misgar, an executive in the J&K Bank. The BCCI gave Rs 112 crore t
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav
Read more