Petrol price increased by two rupees per litre and diesel by one rupee per litre.
2350 crore additional revenue from increase in alcohol prices
Lucknow, May 06: To compensate for the economic loss due to the imposition of countrywide lockdown in wake of outbreak of novel coronavirus disease (Covid-19) from Wuhan city in China last year, the Yogi government on Wednesday decided to increase Value Added Tax (VAT) on petrol and diesel.
However, cabinet meeting , headed by the Chief Minister Yogi Adityanath was held through video conferencing at CM’s official residence at Kalidas Marg on Wednesday. A total of 10 proposals were cleared in a cabinet meeting.
Cabinet Minister for Finance Suresh Khanna said that there has been an increase in the rate of five rupees per bottle in country liquor. In this way, the bottle of 65 rupees will be available in 70 rupees and 70 rupees for 80 rupees.
Similarly, in foreign liquor, Rs 10 has been increased in economy and medium liquor up to Rs 10 in 180 ml, Rs 20 in 180 to 500 ml and Rs 30 in excess of 500 ml.
Regular and premium liquor has been increased by Rs 20 up to 180 ml, Rs 30 in 180 to 500 ml and Rs 50 in over 500 ml.
There is an increase in liquor coming from abroad from Rs 100 to 180 ml, Rs 200 to Rs 180 to 500 ml and Rs 400 to 500 ml over 500 ml.
The cabinet minister informed that the government will get additional revenue of 2350 crores from this price increase.
Increase in illegal business due to closure of liquor sale
The cabinet minister said that due to shut down of liquor sale during lockdown period and involvement of alcohol in people’s daily food habit has escalated its demand resulting in illicit liquor started manufacturing in different villages.
By the first week of May, 80,020 liters of illicit liquor were recovered. 499 kilns were caught in it. As many as 3627 people were arrested by registering 3526 FIRs.
Tax collection of Rs 1,178 crore could be achieved
Cabinet Minister Suresh Khanna said that due to the lockdown, our economic situation has been very weak this month. Against the demand of tax of 12,141 crore, only Rs 1,178 crore could be collected. In view of the present circumstances, mobilization of additional resources has become extremely necessary. In view of this, the state government has decided to increase diesel by Rs. 01 and petrol by Rs. 02 per liter.
2070 crore additional revenue will be received
After this, petrol will now be sold at Rs 73.91 from the current price of Rs 71.53 and diesel will be sold at Rs 63.86 per liter instead of 62.86, minister added.
He said that in view of the using of diesel in tractors, combine harvesters and irrigation pumps by farmers, transport and industries, there has been a small increase in the price of fuel. Price hike will be applicable from Thursday night.
Khanna said that the state consumed 470 crore litres of petrol and 1130 crore litres of diesel. After the price increase, the state government will get an additional revenue of 2070 crore annually from it.
Death due to consumption of sanitizer as non-availability of alcohol in Ghaziabad
He told that three alcohol addicts in Modinagar of Ghaziabad consumed a sanitizer after not getting alcohol. They consumed hand sanitizer as they felt it is replacement for liquor and has high level of spirit content which deteriorated their health and they died.
Similarly, in Kanpur, three people died due to illicit liquor. In view of present circumstances, the price of liquor has been increased because the sale of liquor is being spiked, Khanna said.
“Apart from this, other proposals including Uttar Pradesh Public Health and Epidemic Disease Control Ordinance 2020 have been approved in the cabinet meeting,” Minister confirmed.