Stories
Delhi Liquor Prices Set to Soar as Government Plans Higher Excise Duty, Retail Margins
- •Delhi's new excise policy, expected in October, aims to boost revenue through increased excise duty and retail margins.
- •The final draft of the policy is awaiting approval from the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu after a new excise commissioner is appointed.
- •Private players are unlikely to enter the retail sector; instead, the focus is on adjusting fixed retail margins and excise duty to upgrade shops and attract customers.
- •The policy may increase the number of premium liquor stores and address the issue of customers buying high-end liquor from neighboring cities due to fixed margins in Delhi.
- •Officials indicate potential increases in excise duty, which currently ranges from 30% to 300% on Indian spirits, and possible revisions to liquor serving timings at hotels, clubs, and restaurants.
Key Questions Answered
The Delhi government plans to increase excise duty and adjust fixed retail margins under a new excise policy aimed at boosting revenue. Currently, retail margins are capped at Rs 50 for Indian Made Foreign Liquor and Rs 100 for foreign liquor per bottle. The proposed changes seek to upgrade shops, attract more customers, and encourage stores to stock premium imported liquors that exceed Rs 1,000.
The final draft of the new excise policy is slated to be submitted to the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu for approval after a new excise commissioner is appointed, following the transfer of Ravi Jha. Once approved, the government intends to notify the policy in October ahead of the peak festival season.
Private players are unlikely to be permitted into the retail sector under the proposed policy. The city currently relies solely on government-run liquor shops operated by four major corporations: DTTDC, DSIIDC, DCCWS, and DSCSC.
