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Will alcohol walk the tobacco tax path in times of covid-19?

city New Delhi India city Delhi state Haryana covid-19 pandemic economy Government
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NEW DELHI: With state finances dwindling, the Aam Aadmi Party-led Delhi government late Monday announced a 70% special corona fee on alcohol.

The decision was also spurred by the huge rush at alcohol stores which opened for the first time since the lockdown was announced.

Delhi's neighbouring state Haryana also plans to levy a special covid cess even as stores largely remained shut on Monday due to licence issues.

The special cess could create arbitrage opportunity with other states like Uttar Pradesh which are yet to levy such a cess. India has been under a lockdown since 25 March and stores selling liquor and tobacco have also been shut since then.

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