The Delhi government led by the Aam Aadmi Party (AAP) on Sunday decided to re-sell liquor on the ’70-percent special corona cese.’ The decision was taken by Delhi CEO Arvind Kejriwal in a Cabinet meeting.
According to the PTI survey, the Government has, along with a roll-back on the unique cessation, raised the VAT on all types of liquor by 20 % to 25%.
After a special corona cessation was announced, demand for alcohol declined. The change also takes effect one day before Delhi opens national boundaries with Haryana and Uttar Pradesh, where alcohol taxes are smaller.
In May Delhi’s government announced that it would stop collecting revenue. During the first two lock-up phases, alcohol was not sold. In the first week of May, the third phase started selling alcohol.
Many countries are increasing their VAT and adding special cessation to liquor sales as state funding falls. State governments have tried their hardest efforts to keep liquor and auto fuels, such as petrol and diesel, out of the Goods- and Service-Tax (GST). Together with Delhi there were also increases in liquor taxes in several other countries including Haryana, West Bengal and Telangana.
The Delhi excise department levied a special ‘Corónavirus Tax’ on May 3. After six weeks of lock-down, the city’s government spirits companies — not in markets and shopping centres — may free up. Around 100 shops which could be opened had huge queues and a widespread violation of lockout regulations.
From 18 to 22, more shops were allowed to open, including in markets and private businesses, but on the basis of shop numbers on alternative days.
The Delhi government earned about Rs 200 crore from the special liquor coronavirus fee from 4 to 3 May, the excise department records showed.
About 700 drink shops out of 864 in the city were permitted to operate every day of the week from June1. A senior government official said that those in shopping malls would also be permitted to operate from Monday onwards.
The Delhi Cabinet ‘s Decision was welcomed by Vinod Giri, General Manager, Confederation of Indian Alcoholic Beverage Companies.