Delhi govt's excise revenue records 12% growth in first half of FY26

With rise in liquor sales, the Delhi government has registered over 12 per cent growth in excise revenue collection in the first half of the current financial year as compared to the same period last year, officials said on Saturday.

As per official figures, the excise revenue including value added tax (VAT) was Rs 3,731.79 crore during April-September 2024-25. It grew to Rs 4,192.86 crore in the first half of the current financial year.

The excise revenue of the first half of 2025-26 is likely to rise further with updates as VAT figures were available up to September 16 only, said an excise department official.

"The rise in sale has led to crossing the half mark of excise revenue target of Rs 6,000 crore in 2025-26. With festival season kicking in, peak in sales around Diwali and New Year will hopefully help crossing the annual target," the official added.

According to data, the cumulative monthly excise receipts (excluding VAT) in April-September 2024-25 were Rs 279.81 crore. It rose to 517.26 crore, up 84.86 per cent in the current year.

The revenue excluding VAT in April-September 2024-25 was Rs 2,598.04. In the current year, it rose by over 17 per cent to Rs 3,043.39 crore.

The department has issued instructions to the government corporation run vends to ensure timely orders and keeping the stock ready for the festival season, officials said. The city has over 700 retail liquor outlets that are run by four corporations of the Delhi government.

The excise revenue target was set at Rs 7,000 crore in the budget 2025-26 but was later reset to Rs 6,000 crore in view of sales related estimates, they added.

The Delhi government has formed a high-level committee headed by PWD minister Parvesh Sahib Singh Verma, which is framing a new excise policy. The government aims to boost excise revenue through the new policy, which it intends to be transparent, consumer friendly and socially responsible, officials said.

The committee is likely to come up with a draft of the policy in coming months. In the meetings of the committee in recent past, various issues like stagnant prices, legal age of drinking, and role of private players in retail trade have been discussed with stakeholders including liquor manufacturers as well as retailers, sources said.

The excise tax rate in Delhi has not been revised since 2014 and MRP was last updated three years ago, a source said. Pricing of liquor including fixed margins per bottle are certain issues being deliberated as part of drafting the policy, the source added.

The fixed margins per bottle in Delhi put all kinds of liquor in one segment, encouraging retail vendors to stock cheaper, less popular brands. This also encourages brand pushing and unavailability of more popular brands and high end liquor, the sources added.