Liquor Likely To Become 50% Costlier As Delhi Govt Mulls New Excise Policy

An expert panel formed by the Delhi government has recommended a near 50% increase in liquor prices. It is pertinent to mention here that new guidelines pose a major threat for small and medium booze manufacturers.

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The Aam Aadmi Party-led Delhi government is planning to sweep changes in the format of retail sales and raise excise duty on liquor which in turn, could push booze rate to an all-time high in the national capital.

According to the media reports, an expert panel formed by the Delhi government has recommended a near 50% increase in liquor prices. It has also proposed to 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.

As claimed in the report, the state government at present earns excise revenue of Rs 46 crore from brand registration, Rs 4,507 crore from Indian liquor, Rs 240 crore from foreign liquor, Rs 210 crore from country liquor, Rs 170 crore from licence fee from restaurants and bars servings liquor, Rs 300 crore from export and permit fees and Rs 40 crores from retail licences. This sums up to Rs 5,068.70 crore. However, the Delhi government is keen to increase to nearly Rs 8,000 crore.

It is pertinent to mention here that new guidelines pose a major threat for small and medium booze manufacturers. For the record, the committee has recommended that the Delhi government abolish rum and whisky brands below Rs 140 so that quality products are made available.

The panel further proposed to cutdown on number of dry days in the national capital in order to avoid running away of consumers to the neighbouring Noida and Gurugram to buy liquor.