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Published On: Sun, Jun 7th, 2020

Delhi govt. to withdraw 70% ‘corona cess’ on alcohol

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-liquorNEW DELHI : The Delhi government has decided to withdraw the 70 percent ‘special corona fee’ levied on the maximum retail price on all categories of liquor, with effect from June 10.
“The Delhi government lifted ‘special corona fee’ on liquor from June 10, but raised VAT on all categories of alcohol from 20 per cent to 25 per cent,” an official as saying on Sunday.
The Arvind Kejriwal-led government in Delhi had imposed a ‘special corona fee’ of 70 percent on MRP on all categories of liquor sold through retail licensees for consumption ‘off the premises’ from May 5 amid corona virus lock down.
The AAP government had reportedly taken the decision to avoid over-crowding at alcohol shops and to boost the government revenue, which has been hit hard due to the corona virus-forced lock down. According to reports  the sale of alcohol saw a steep decline in the national capital in May due to the 70 per cent ‘special corona cess’ imposed on alcoholic beverages.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) had earlier urged the Delhi government to immediately bring special corona cess to a “realistic and sustainable” level pointing out sales data of the capital city for the month of May.

“From the data available, it appears that our apprehensions were correct. Despite the initial surge, the sale of liquor has fallen drastically in Delhi in the month of May over the same period last year,” CIABC Director-General Vinod Giri had said in a letter to the state government.

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