Your booze could be more expensive in Delhi this festive season: Here’s why | Today’s news
Liquor prices may rise in the national capital ahead of the festive season, with the Rekha Gupta-led Delhi government planning to hike excise duty and retail margins to boost revenue under its new consumption policy, The Indian Express reported.
The policy is likely to be announced in October, according to the report.
Entry of private players into liquor business in Delhi is unlikely.
However, the key objectives of this policy include increasing the fixed retail margin and excise duty. This will be a big change as currently there are only government run liquor stores in the city. Retailers are not earning much revenue due to fixed margins, the report said. With this key change, stores are expected to be modernized and attract more customers, he said.
Under the current system, excise duty on liquor in Delhi is levied on different wholesale price (WSP) tables and varies depending on the type of liquor. For example, the duty on Indian spirits ranges from 30% to 300%. Any increase in these slabs is likely to increase the tax component of liquor prices.
Consumption tax is also to increase
“If the excise duty is increased, the prices of liquor will also be increased,” the report quoted one official as saying.
“The final draft of the new excise duty policy is ready,” a senior official told The Indian Express.
Last week, Delhi Excise Commissioner Ravi Jha was transferred to Arunachal Pradesh. Once his replacement is named, the proposal will be sent to the Delhi government and Governor Taranjit Singh Sandhu for final approval, according to the report.
If there is an increase in excise duty, the price of spirits will also increase.
The Delhi government plans to announce the new policy in October, ahead of the peak festive season.
More premium stores in Delhi
Last year, Chief Minister Rekha Gupta announced plans to introduce a new excise duty policy for the state capital. It also set up a ministerial committee headed by minister Parvesh Verma to formulate a “transparent and socially secure” policy.
Delhi is also expected to see more premium liquor stores under the new policy. “Currently, the retail margin ceiling is fixed ₹50 on Indian Foreign Liquor and ₹100 on foreign liquor per bottle. Liquor stores in Delhi do not stock premium imported liquor at the above price ₹1,000 because of the fixed margin, which ends up pushing customers to neighboring cities like Gurugram and Faridabad, where shops operate without a fixed margin.
