Delhi may not see excise duty hike on liquor this year

A proposal in this regard has been submitted to AAP govt for its final approval

Delhi government is contemplating not to increase excise duty on liquor this year. However, the excise department has proposed to increase license fee in different categories from around 20 to 30 per cent.

A proposal in this regard has been submitted to the AAP government for its final approval.

In its proposal, the department said that last year, the prices of liquor, across various segments, were increased by 8-12 per cent and, hence, there is no need to revise excise duty this year.

"After Haryana Government increased licence fee by 100 per cent and levy assessment fee on imported liquor under its Excise Policy 2015-16, there is no big difference in rates in Delhi and Haryana which would also help curb liquor smuggling.

"As the rates of liquor, beer were significantly increased in Delhi last year, we don't think there should be revision of excise duty this year, which is also part of excise strategy to increase the revenue," a senior government official told PTI.

However, the department has proposed to increase fee of license in different categories from around 20 to 30 per cent, including pub and bar licences, the official said.

"In view of Haryana government doubling the restaurant license fee for selling alcoholic beverages in Gurgaon to Rs 12.5 lakh from the earlier existing Rs 6 lakh, the Delhi excise department has also proposed to increase license fee in different categories ranging from 20 to 30 per cent," the official said.

The department's proposal will soon be tabled before Cabinet for approval.

The city excise department has also submitted another proposal which favours bringing down the legal age from the existing age 25 to 21 years for consumption of beer and wine.