Puducherry is famous for its cheap ______, since the taxes on it are very low.

A. Fish

B. Liquor

C. Hotels

D. None of these

Answer: Option B

Solution(By Examveda Team)

Puducherry is famous for its cheap Liquor since the taxes on it are very low. Liquor price is cheap compared to other states in India. This is because of Value added Tax (VAT). This tax will be there for all the states to run their government and to implement some schemes. Pondicherry is a Union Territory, which means it is directly under the Central government, there will be not VAT. So, the rates will be low.