Several new taxes were introduced in the state budget (March 2010) and again in May that have imposed a heavy burden on the working people. Noting the increase in expenditure on projects and schemes related to the CWG, the Delhi Minister for Finance, Dr.Walia said, "Our revenue collection through taxes has not been adequate due to recession. Therefore, it has become essential to look for measures to generate additional revenue to sustain development."
These measures include
- an increase in VAT on various items like desi ghee, household plastic goods, kerosene stoves, wood, inverters, tea, coffee, locks, lanterns, fertilisers, and all utensils and cutlery items, including pressure cookers and pans
- increase in the VAT to 20% from 12.5% on diesel
- VAT on retailers buying vegetables and fruits from the Wholesale Mandis
- withdrawal of subsidy on LPG, taking the cost of a cooking gas cylinder in the national capital region to Rs.322.80 from the earlier cost of Rs 281.20
- increase in road tax on two and four-wheelers with effect from June 1.