Question
Explain : Need to impose additional taxes on certain items.

Answer

Even though the state linked road transportation services are expensive, the government spends a lot of money to provide facilities to the people. The government provides basic necessities like food-grains, edible oil, sugar to lower income families at subsidized rates which are less than the production cost through 'fair price shops' under the public distribution system. All such activities are carried out by the government for the purpose of providing basic amenities to the citizens. In order to implement such welfare schemes some items require a higher tax imposed on them.

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