No matter where you live in world, one thing that you always count on is that you will be paying taxes to local government. Every person in country has to pay taxes in any form.
It is said by one of the scholar that death and tax are very important for every individual.If a man is alive then he has to pay tax in any condition. Covid 19 has brought new challenges for India’s economic growth that has been slowdown since Lockdown. It is estimated that central government earns Rs 2.48 lakh crore annually from exercise duty on liquor. Due to lockdown the whole nation was shut down due to which there was an acute liquidity shortage. As Country walks to exit strategy from lockdown to unlock l , the highest taxes were imposed on liquors and fuels. Liquor is an important source of earning for both centre and state government. Taxes on liquor and petroleum girls have raised very high as government were running out of cash in this lockdown. They faced difficulties to pay salaries to public servants. Moreover, 40% part of salaries are cut down this month. Delhi increases the prices of liquor by 70% within this month after seeing liquor shops being overcrowded. Other states have also followed the same route. Some states like Haryana, Nagaland have increased the rates of petroleum fuels. All the states are pondering each other’s option to increase their revenue in this harsh time of COVID 19.
Business are finding difficulty to run and they are not able to pay their income tax returns which is to by every individual. The rate of unemployment rises to 27.11 percent .
Indian railways , metros , airlines,buses are most affected during this coronavirus lockdown. Indian Railways have stopped all train passengers services, metro which have more than 500 routes in Delhi only are closed since Lockdown that is most important source of revenue for state government. It is estimated that Indian Railways had great loss around Rs 12,500 core – Rs 6500 crore due to closure of Indian Railways since 2 months.
Public Transport has zero revenue since coronavirus lockdown. The demand for transport has reduce as people take the practice of work from home, opt online shopping, online streaming movies and order food online through delivery apps. But to recover these losses government decided to jerk all trains and flight services in which they double the price of tickets of flights.
But government realised that businesses also need some support in this worst affected time because many companies risk bankruptcy or their permanent closure . The COVID 19 crises had significant impact on business, market stock , government coffers.
The government also being very supportive during this time, finance minister Ms Nirmala Sitharaman has announced various relief related to taxation, insolvency and bankruptcy code and many more. The deadline of taxpayers has increased to 30 June,2020 and late fee penalty have also been waived off. Now, there is no charges on cash withdrawal from other ATM banks .
Tax is a kind of vital ingredient which contributes huge amount to our economy . In this crucial time of disease like COVID-19 various steps were taken by Indian government to safeguard its people , lockdown was one of them . Due to lockdown country’s economy was at a break and as the time passed , it dropped at a very rapid rate . Revenue from various sectors of the society was unable to be generated but with passage of time the heads of the country are slowly unlocking it as it is really necessary to take care of the economical status for a country like India , which is yet in a developing stage
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