Key Points:
- The Delhi Government has decided to raise the excise duty on liquor by 50%.
- The reason behind the raise in the excise duty comes after a panel of experts, formed by the government in Delhi suggested sweeping changes that could push booze rates in Delhi to an all-time high and change the way drinks are sold in Delhi NCR by the government and privately owned shops.
- The new excise policy is likely to introduce many changes in terms of issuing licenses for both government-run and private liquor shops in Delhi.
- The Delhi government is expecting a near 50 percent increase in alcohol prices and raise its revenue from Indian liquor, foreign liquor and country liquor to nearly Rs 8,000 crore from the current earning of Rs 5,000 crore.
The Delhi Government has decided to raise the excise duty on liquor by 50% that will perceptibly increase the price of the liquor that is sold. The format of retail sales by the Aam Aadmi Party-led government is up for a change in the liquor sector that has created a chaos in the Indian Capital.
The reason behind the raise in the excise duty comes after a panel of experts, formed by the government in Delhi suggested sweeping changes that could push booze rates in Delhi to an all-time high and change the way drinks are sold in Delhi NCR by the government and privately owned shops.
The Delhi government is expecting a near 50 percent increase in alcohol prices and raise its revenue from Indian liquor, foreign liquor and country liquor to nearly Rs 8,000 crore from the current earning of Rs 5,000 crore.
Two months ago, the AAP government had hinted that indicated a new excise policy was being prepared and had set up a committee of experts for it, while also seeking suggestions from the citizens.
The new excise policy is likely to introduce many changes in terms of issuing licenses for both government-run and private liquor shops in Delhi.
According to the report, the Delhi government currently earns excise revenue of Rs 46 crore from brand registration, Rs 4,507 crore from Indian liquor, Rs 240 crore from foreign liquor and Rs 210 crore from country liquor. The state government also earns Rs 170 crore from licence free from restaurants and bars servings liquor, Rs 300 crore from export and permit fees and Rs 40 crores from retail licences. It totals up to Rs 5,068.70 crore, which the state government wants to increase to nearly Rs 8,000 crore.
