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The Delhi government imposed a 70% tax on liquor that will take effect from Tuesday, sources said Monday night.
The 70% tax called “special crown rate” will be charged on the maximum retail price or MRP per bottle.
Senior government officials said the blockade since March 25 to prevent the spread of Covid-19 cost the Delhi government around Rs 645 crore in revenue from the sale of alcohol, when calculated based on estimates. revised in the 2019-20 state budget. The excise department was preparing a full report on the exact loss of income incurred by the liquor sale ban for more than 40 days, they said.
The Delhi government night movement will increase government revenue, but will also lead to a sharp rise in retail liquor bottle prices. For example, a bottle of liquor with a maximum retail price of Rs 1,000 before, will now cost Rs 1,700 in the city.
The Delhi Government Finance Department said “70 percent of the maximum retail price (will be imposed) on all categories of spirits sold through retail consumer concessionaires …”
Prime Minister Arvind Kejriwal warned that his government would be forced to close stores, which will be opened under the conditional reduction of applicable closing restrictions until May 17, in case of violation of social distancing rules.
Kejriwal’s warning came after the chaos that followed the opening of government-run wine shops in the city after 40 days. Many liquor stores had to be closed and in some places the police had to disperse large crowds that had gathered in front of the stores.
According to an official, some 150 government-run liquor stores have been allowed to open from 9 a.m. at 6:30 p.m. according to the latest confinement relaxations granted by the Ministry of the Interior (MHA).
Delhi recorded another large increase of 349 new Covid-19 cases that raised the national capital account to 4,898, the health department said in a statement Monday night.
There are 3,403 active cases, while 1,431 people have recovered from Covid-19. There were no victims in the last 24 hours that remained in 64.
(With contributions from the agency)
