State tax coffers suffer as demand for fuel dries up2 min read 26 Apr 2020, 10:20 PM IST
Sales tax/value-added tax (VAT) on petroleum products (petrol, diesel, etc.) is one of the major ways through which state governments collect tax
Another big money-spinner for state governments is taxes on real estate transactions, which have more or less come to a halt
With economic activity at a standstill due to the lockdown, the total taxes collected by the Centre and state governments are bound to be impacted. As state government taxes are more consumption-oriented, they are feeling a greater pinch. Mint takes a look.