Delhi govt prepares new excise policy that will increase liquor prices by 50%

A move to raise excise duty on liquor and change the format of retail sales by the Aam Aadmi Party-led government has set the proverbial cat among the pigeons in the Indian Capital.  A panel of experts, formed by the government in Delhi, has 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.

MoneyControl has reviewed the report, which says the Delhi government is contemplating a near 50 percent increase in booze 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.

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 fee 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.