In the backdrop of dwindling revenues following the covid-19 lockdown, the Uttar Pradesh government today hiked the tax on liquor and petroleum products (petrol and diesel) to partly shore up its exchequer.
The upward revision of tax on these two commodities is expected to bring additional revenues of Rs 4,420 crore to UP during the current 2020-21 financial year.
Since petrol and diesel do not fall under the purview of the Goods and Services Tax (GST), states enjoy considerable leverage in imposing such taxes at the local level.
The decision was taken at the state cabinet meeting chaired by chief minister Yogi Adityanath here this afternoon.
