Pondy govt mulling COVID-19 tax on liquor, says Narayanasamy

Puducherry, May 8 (): Puducherry Chief Minister VNarayanasamy said here on Friday that the territorialadministration was mulling imposition of special COVID-19 taxon liquor to wriggle out of the current fiscal crisis.

He told reporters that several states have introducedsuch a tax to offset the loss of revenue.

"Excise revenue is a major source of income for theterritorial administration. The COVID-19 lockdown since March25 had necessitated closure of liquor shops in the UnionTerritory resulting in loss of revenue to the Exchequer," hesaid.'

He said a decision on the issue would be taken at thecabinet meeting scheduled for Saturday.

The Chief Minister further said such a tax would beimposed on petrol and diesel also.

The territorial administration has not taken anydecision on re-opening the liquor shops that have remainedclosed during the ongoing lockdownalthough the neighbouringTamil Nadu had let recommencement of retail sale of liquorthrough government-owned TASMAC shops, he said.

Narayanasamy had said a decision on re-opening theliquor shops would be taken soon. CORNVG NVG