Liquor prices hike: After Delhi, Andhra Pradesh raises tax on alcohol by 75%

After Delhi, the Andhra Pradesh government has hiked liquor prices by 75 per cent. The revised rates will come into effect from today afternoon. "The price hike has been imposed to discourage alcohol consumption," says Andra Chief Minister's Office.

After the state allowed some business activity from Monday, it increased liquor prices by 25 per cent initially but today the Jaganmohan Reddy government decided to go the Delhi-way by allowing massive hike to 'discourage' people from overcrowding liquor shops. More states are likely to follow suit to make up for the revenues crunch due to the 40-day lockdown.

Also read: Coronavirus Lockdown Live Updates: Delhi, Andhra Pradesh hike liquor prices; wine shops open; cases-46,433

The Centre recently allowed the sale of liquor across all zones from May 4, which resulted in buyers swarming shops and causing chaos while throwing social distancing norms to the wind. The situation became so out of control that East Delhi authorities had to close many wine and liquor shops.

On Monday evening, the Delhi government also imposed a 'Special Corona Fee' of 70 per cent on the sale of liquor, which will come into effect from today.

Notably, state governments' earnings have been affected badly due to the coronavirus-induced lockdown. For example, Delhi earned Rs 3,500 crore in April 2019, but only Rs 300 crore in April this year. This has prompted states raising several duties to make up for the revenue loss.

Earlier today, the Delhi government increased petrol price by Rs 1.67 a litre and diesel prices saw by Rs 7.10 per litre. Petrol in Delhi now costs Rs 71.26 a litre as against Rs 69.59 previously, while diesel price has been hiked to Rs 69.39 per litre from Rs 62.29 earlier.

Meanwhile, the total number of confirmed COVID-19 cases in the country jumped to 46,433 on Tuesday, including 32,138 active cases, 12,726 recoveries, 1 migrated and 1,568 deaths, says the health ministry data.

Also read: Delhi govt imposes 70% 'Special Corona Fee' on alcohol