It's one the biggest rise in the rates of petrol and diesel in Delhi. Petrol price in the national capital was hiked by Rs 1.67 a litre on Tuesday and diesel by a steep Rs 7.10 per litre after the Delhi government raised local sales tax or value-added tax (VAT) on the two fuels. This follows Delhi government's decision to raise VAT on petrol to 30 per cent from 27 per cent, previously. In case of diesel, VAT has been almost doubled to 30 per cent from 16.75 per cent.
 
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Petrol in Delhi now costs Rs 71.26 a litre as against Rs 69.59 previously.
 
Diesel price has been hiked to Rs 69.39 per litre from Rs 62.29.
 
The VAT increase comes after the government imposed a 'special corona fee' of 70 per cent of the MRP on liquor from Tuesday.  In an order issued late on Monday night, the Finance Department imposed the fee, describing it as the 70 per cent of the maximum retail price on all categories of liquor sold through retail licensees for consumption "off" the premises.
 
Followed by the May 4 order from the Finance Department, the Excise Department also issued another order directing the shops to collect the Special Corona Fee on all categories of liquor sold in Delhi though the retail vends with immediate effect.
 
"The Delhi government has levied a Special Corona Fee -- 70 per cent of the Maximum Retail Price (MRP) -- on all categories of liquor from the consumer at the Point of Sale by the retail vend licensees for consumption off the premises, which will be further reimbursed to the Government," the order signed by Deputy Commissioner (Excise) said.
 
It also asked the retailers to compile the data of the sale, saying the collected Special Corona Fee shall be reimbursed to the Government on a weekly basis.  "A copy of this order should be prominently displayed by the licensees at every vend before starting any liquor sale on Tuesday," the Excise Department said. According to officials, the step will help in boosting the revenue, badly hit due to the COVID-19 lockdown.
 
On Sunday, while announcing the relaxation in the lockdown -- extended from another two weeks from Monday -- Chief Minister Arvind Kejriwal said the government is finding it difficult to pay the salaries due to revenue loss of Rs 3,200 crore in April, as compared to the previous year.
 
The move can be seen as Delhi government's attempt to harvest more revenue from liquor sales as the lockdown has affected businesses and tax collection.