Delhi govt levying more taxes to fill coffers

New Delhi, May 5 (IANS) As the revenue generation of the government was badly affected by the coronavirus lockdown, the Delhi government is exploring ways to fill its coffers, with more tax collection from the public.

Just a day after offering relaxations in the lockdown in the city, the government has already pressed additional taxes on liquor. It has increased the Value Added Tax on petrol and diesel as well.

According to an official figure for the current financial year, the government was expecting about 15 per cent of its total revenue generation from liquor sales.

However, with the lockdown in force from more than 40 days since March, the government has a loss of about Rs 700 crore in the liquor sale.

From Tuesday, a ‘Special Corona Fee’ has been imposed by the government on the liquor sale — which will be 70 per cent of the MRP.

“The revenue generation is very low from our expectations. Only standalone shops are being opened in the city. Even if we talk only about the revenue generation from liquor, the shops were not the only source. The pubs and hotels selling liquors were still not opened,” an official told IANS.

Liquor shops in Delhi were last open on March 21 before Monday.

Apart from this, the Delhi government hiked the Value Added Tax (VAT) on petrol and diesel to 30 per cent. In an order, the Finance Department hiked the VAT making it “30 paisa in the rupee”. So far, the VAT on petrol was 27 per cent and that on diesel was 16.75 per cent.

“Life isn’t all about rainbows and sunshine. Tough times need Tough solutions – my learning as Finance Minister,” Sisodia tweeted.

According to Chief Minister Arvind Kejriwal, every year in April, the estimated revenue generation is Rs 3,500 crore, and this year, it is just 300 crore. He came out in public saying if the situation continues, it will be difficult for the government to pay salaries to its employees.

For a state, there are two sources of revenues — tax revenue and non- tax revenue.

The tax revenue includes the state’s own tax revenue and the share of the Central government in it. The state’s tax revenue further includes taxes on income; on property and capital transactions; and taxes on commodities and services.

The Delhi government’s 2020-21 Budget was proposed at Rs 65,000 crore.

–IANS

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