NEW DELHI : State governments across India are desperately looking to boost revenues and have implemented a range of measures, including raising tax on fuels and bumping up liquor cess, as they attempt to offset drastic revenue shortfalls because of the coronavirus lockdown.

With dwindling fund transfers from the Centre and limited avenues to raise taxes after the goods and services tax (GST) was introduced in 2017, states have relied heavily on borrowing money from the markets to combat the covid-19 health crisis.

Now that they have hit the borrowing ceiling, among the few options left with states is to raise taxes on fuels, liquor and tobacco that are still outside the GST regime.

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