With the gradual easing of the lockdown, States and UTs are now gearing up for a battle on the fiscal front. And floored by the double-whammy of mounting Covid-related expenses and anaemic revenue flow, many have realised that they cannot afford to wait to bridge their yawning fiscal gap. In an early indication of things to come, the Delhi government on Tuesday said that it will levy a 70 per cent extra tax on liquor. The Arvind Kejriwal-led Aam Admi Party (AAP) government called the new tax “special corona fee”. The tax will be charged on the MRP on a per bottle basis.
