Yogi Adityanath government raises petrol, diesel prices; imposes corona tax on liquor to boost revenue

New Delhi: After relaxing COVID-19 lockdown norms, the Yogi Adityanath government in Uttar Pradesh on Wednesday (May 6) decided to impose a ‘corona tax’ on liquor, besides raising prices of petrol and diesel. The decision was taken at a cabinet meeting held today in Lucknow.

Finance Minister Suresh Khanna told media that the state government will impose ‘corona tax’ on liquor, adding that the revised rates are likely to fetch an additional revenue of Rs 2,350 crore.

With this price hike, country-made liquor will now be costlier by Rs 5, medium-level alcohol by Rs 10 for 180 ml, Rs 20 for 500 ml and Rs 30 for those above 500 ml, while premium brands have been hiked by Rs 20 for 180 ml, Rs 30 for 500 ml and Rs 50 for those above 500 ml.

Khanna said, “price of foreign branded liquor has been hiked by Rs 100 for 180 ml, Rs 200 for 500 ml and Rs 400 for above 500 ml.” 

The UP Finance Minister said the government will impose an additional VAT (Value-Added Tax) of Rs 2 per litre on petrol and Rs 1 per litre on diesel, which is expected to generate additional revenue of Rs 2,070 crore for the cash-starved state exchequer.

He further said petrol will now cost Rs 73.91 per litre in UP, while diesel will be available at Rs 63.86 per litre. The hiked prices will come into effect from midnight today.

Notably, the Yogi Cabinet also passed a draft ordinance allowing provision for a fine of up to Rs 5 lakh and a jail term of up to seven years as it amended the Epidemic Diseases Act, 1897. It will ensure stricter punishment for those assaulting corona warriors, including doctors, paramedical staffs, police personnel and sanitary workers.

This has come days after the central government brought an ordinance to protect the health workers. 

Notably, the amendment made by the state government -- Uttar Pradesh Epidemic Disease Covid-19 Regulations, 2020 -- will be implemented at the earliest.