Delhi's new excise policy is reportedly slated for notification in October, a move that could see liquor prices in the national capital climb. The government plans to implement higher excise duties and retail margins, which would directly impact consumer costs.
According to sources, the final draft of the new policy is prepared and awaits approval from the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu, following the appointment of a new excise commissioner. The administration aims to roll out the policy before the bustling festival season begins.
A key aspect of the new framework is the continued exclusion of private players; Delhi's liquor retail sector will remain government-run. The proposed changes primarily focus on adjustments to fixed retail margins and excise duty structures.
Changes to Retail Margins and Premium Stores
Currently, government-operated liquor shops in Delhi function with fixed retail margins. Under the existing system, margins are capped at ₹50 per bottle for Indian Made Foreign Liquor (IMFL) and ₹100 for foreign liquor. Officials have noted that these caps often deter shops from stocking imported spirits priced above ₹1,000, leading some consumers to purchase from neighboring cities like Gurugram and Faridabad.
The new policy is expected to overhaul this fixed-margin system. Additionally, there are plans to increase the number of premium liquor stores across the city, aiming to enhance product availability and consumer experience for higher-end selections.
Excise Duty Adjustments and Serving Timings
Beyond retail margins, the government is also reviewing an increase in excise duty. Delhi currently imposes excise duty based on Wholesale Price (WSP) slabs and liquor categories, with Indian spirits facing duties ranging from 30% to 300%. Any upward revision in these duties would directly translate to higher overall liquor prices for consumers.
Officials have also indicated that changes to the serving timings for liquor at hotels, clubs, and restaurants could be part of the new policy. Delhi presently operates over 700 liquor shops, all managed by four government corporations.
This new policy initiative comes after the previous liquor policy, introduced by the Aam Aadmi Party (AAP) government, was rescinded following investigations by the Central Bureau of Investigation (CBI) and the Enforcement Directorate.