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More states to follow Delhi's 70% corona fee on liquor

  • Jun 2, 2020 | Divita S Gupta

After the Delhi government levied a Corona fee of 70% on the MRP of the liquor sold in the State, more States are following suit. The State Government of Andhra Pradesh increased taxes on liquor from 50% to 75%. The State Government of Rajasthan also increased the tax on liquor by ten percentage points, making the maximum tax on the sale of alcohol at 45%. Due to revenue scarcity in the time of the pandemic, other states might follow suit and impose their own tax rates on the sale of alcohol. Since taxes on liquor are outside GST, the states have the authority to change the rates without seeking permission from a central authority like GST Council.


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Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.