If you live in Delhi and are preparing for the upcoming festivals of Diwali, Christmas and New Year, then this news can affect your pocket. Delhi government is going to implement the new excise policy soon. According to media reports, this policy is completely ready and there is every possibility of it being notified in the month of October.
Excise duty and retail margin will increase
Under the new policy, the government is planning to increase the excise duty and retail margin so that the revenue of the state can increase. This simply means that liquor bottles may become expensive in Delhi in the coming days.
Vinod Giri, Director General of Brewers Association of India, has clarified that if the government increases excise duty to increase revenue, then the prices of liquor will automatically increase. Currently, there is 150 percent excise duty on beer and 85 percent on imported liquor along with 25 percent VAT.
Fixed margin will end, premium stores will open
At present, liquor shops in Delhi are run only by the government, where shopkeepers get only a fixed margin per bottle. Like Scotch costs around Rs 100 per bottle. For this reason, shopkeepers shy away from keeping bottles of premium and foreign brands priced above Rs 1000.
In the new policy, the fixed margin system can be abolished or revised to make percentage based margin. With this, premium wine and scotch shops will expand rapidly in Delhi and customers will get better options.
There will be less competition from Gurugram and Faridabad
Currently, the Black Label which is available for Rs 3500 in Delhi, is bought by people in Gurugram for Rs 2400. The main reason for this is that work is being done without fixed margin in Gurugram. By improving margins and retail structure in Delhi, the government wants that buyers of premium liquor should not run to neighboring cities and make purchases in Delhi itself.
According to officials, this time the possibility of return of private players is negligible. The shops will remain government-owned, but major changes will be made in their modernization and margin structure so that customers can get a better experience.
When will the new policy be implemented
After the transfer of Delhi Excise Commissioner Ravi Jha, the process of appointment of a new officer is going on. As soon as the new Excise Commissioner assumes office, the final proposal will be sent to the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu for final approval. Once approved, it will be notified before the festive season starts in October.
If you are thinking of buying a particular brand for festivals, then keep an eye on the situation before the new policy is notified in October and the new rates are implemented.