It is notable that due to on account of the Corona pandemic, Telangana is in a precarious situation, especially in terms of revenue generation. Usually, the revenue generation of any state mainly depends upon liquor consumption, collection of direct taxes (income tax, property tax, etc), VAT on fuel sales.
Of late the TS govt is giving a free rein to almost all the urban local bodies (municipal corporations & municipalities) to increase the trade licence fee at their wish to meet the financial requirements amid the covid-19 pandemic since financial recovery is going at a slow pace.
At one side, the central govt has announced some relief packages in order to create a demand for money flow and on the other side giving flexibility to the ULB’s is not at all commendable even though the trade licence fee is the highest revenue generation method for the govt after property tax,
But at the same time as the fuel price is skyrocketing, it is admirable that the govt is pondering about proposals to collect COVID cess from the consumers who utilize the fuel for commercial and industrial purposes, giving some relief to the common man.