Tax, tax, tax
A protracted battle against coronavirus has been taking a toll on the government coffers, leading to states looking to hike taxes wherever possible, in a bid to make up for some of the deficit.
Sealed borders
With every state’s borders sealed, the risks of smuggling have been negated, which leaves states free to hike taxes steeply.
Back-to-back hikes
For instance, the Andhra Pradesh government raised liquor prices by another 50%, a day after a 25% hike. The fresh hike is expected to add additional revenue of Rs 9,000 crore a year.
Fuel
With oil prices tanking across the globe, governments have decided to hike up fuel prices with minimal expense; for instance, petrol in Delhi went up by Rs 1.67 a litre, and diesel by a steep Rs 7.10 per litre.
Other options
There are, of course, other hikes available to governments - entertainment tax, municipal taxes and local panchayat cess, registration charges on cars and property - which could be implemented as and when they choose.
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