Sisodia defends hike in liquor, fuel taxes

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Sisodia defends hike in liquor, fuel taxes

Last Updated : 05 May 2020 04:09:04 PM IST

Finance Minister Manish Sisodia (file pic)

As the Delhi government hiked taxes on fuel and liquor, Finance Minister Manish Sisodia said, here on Tuesday, life wasn't all about rainbows and sunshine and tough times needed tough solutions.

"Life isn't all about rainbows and sunshine. Tough times need tough solutions - my learning as Finance Minister," Sisodia tweeted.

On Sunday, Chief Minister Arvind Kejriwal said the government had suffered Rs 3,200 crore revenue loss in April compared with the year-ago month. The revenue loss due to lockdown was making it difficult to pay salaries to employees, he added.

"Every year in April, the estimated revenue generation is Rs 3,500 crore. But this year, it's just Rs 300 crore," Kejriwal said.

The lockdown in Delhi has been extended for two more weeks, with certain relaxations. By the Monday evening, the Delhi Finance Department imposed on alcohol a 'special corona fee', which is 70 per cent of the maximum retail price (MRP).

The Delhi government also hiked the value-added tax (VAT) on petrol and diesel to 30 per cent -- "30 paise per rupee". So far, the VAT on petrol was 27 per cent and diesel 16.75 per cent.

The steps are aimed at raising the government's revenue.