NEW DELHI, May 5 (Reuters): Officials in India's capital imposed a special tax of 70% on retail liquor purchases from Tuesday, to deter large gatherings at stores as authorities ease a six-week lockdown imposed to slow the spread of the coronavirus.
Taxes on alcohol are a key contributor to the revenue of many of India's 36 states and federal territories, most of which are running short of funds because of the lengthy disruption in economic activity caused by the virus.
Police baton-charged hundreds of people who had flocked to liquor shops when they opened on Monday for the first time in a relaxation of the world's biggest lockdown, which is set to run until May 17.
The Delhi state government announced the "special corona fee" in a public notice late on Monday.
Other states, such as southern Andhra Pradesh, where people also violated social distancing measures to queue up in their hundreds for alcohol, also hiked prices.
