With the current situation in the country where most of the businesses are closed and government is not able to collect tax. Now many state government are coming up with cess in the name of Covid-19.
Where Nagaland has started collected such cess on sale of petrol and diesel. Cess on diesel is Rs. 5 per litre and on petrol it is Rs. 6 per litre.
We know that in many states government has given permission to open wine shops and we came across a news that in Karnataka sales of liquor in one day was Rs. 45 crore which is insane and many people are even compromising social distancing for purchase of liquor.
During such times Delhi government has come up with a 70% Covid-19 cess on such liquor.
There are also news coming in that Haryana will also soon start this cess on liquor.
As we all know liquor has been the major source of income for the states where it is allowed and that’s why government first gave permission to open wine shops as government knows that people would first go to buy liquor and now cess has been also charged but still people will buy it even at a premium and same will help government fulfill its budget.
We had also seen images of single person purchasing liquor worth more than Rs. 50000.
Also all the above items are not covered under GST and are covered under VAT and hence it’s upto each state government on what tax they want to charge on such items.
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