Delhi orders discontinuation of discounts on MRP of liquor

Delhi orders discontinuation of discounts on MRP of liquor

The Excise Department announced on Monday that it decided to discontinue discounts, rebates and concessions on MRP of liquor in the National Capital Territory of Delhi.

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Delhi government has decided to discontinue discounts, rebates and concessions on MRP of liquor in the National Capital Territory of Delhi. Delhi government has decided to discontinue discounts, rebates and concessions on MRP of liquor in the National Capital Territory of Delhi.
Business Today Desk
  • Feb 28, 2022,
  • Updated Feb 28, 2022 8:26 PM IST

The Delhi government's excise department on Monday said it has decided to discontinue discounts, rebates and concessions on maximum retail price (MRP) of liquor in the National Capital Territory of Delhi.

The Department of Excise, Entertainment and Luxury Tax stated that it took the decision after it was brought to its attention that as a result of the discounts offered by licenses through their retail vends, there were instances reported of large crowd gathering outside the liquor stores leading to law and order problems and inconvenience to the local population of areas.

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It added that the COVID-19 situation is not yet over and the danger of COVID-19 still persists."...therefore the huge crowds is likely to aggravate the rise in COVID cases in Delhi," the official order said.

The department further explained that it was reported that such discounting is leading to unhealthy market practices being deployed purely for short term business gains by some licensees and is leading to distortion of markets. 

"The intent of the government in regard to discounting was to promote consumer choice and healthy competition and determination of price by market forces. The discounting of this nature was not the objective of the government while permitting the discounts in the new Excise Regime," read the statement.  

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The department ordered all L7Z licenses to strictly abide by Rule 54(3) of the Delhi Excise Rules, 2010 and not give concession, rebate or discount on the MRP of liquor. 

It added that if any violation is brought to the notice of the authorities, "actions as per Rules and Act as well as penal action as per the tender document shall be initiated against the defaulting licensee". 

Also read: Assembly Polls: EC seizes over Rs 1,000 cr worth of cash, drugs, liquor, freebies

Also read: Delhi orders discontinuation of discounts on MRP of liquor

The Delhi government's excise department on Monday said it has decided to discontinue discounts, rebates and concessions on maximum retail price (MRP) of liquor in the National Capital Territory of Delhi.

The Department of Excise, Entertainment and Luxury Tax stated that it took the decision after it was brought to its attention that as a result of the discounts offered by licenses through their retail vends, there were instances reported of large crowd gathering outside the liquor stores leading to law and order problems and inconvenience to the local population of areas.

Advertisement

It added that the COVID-19 situation is not yet over and the danger of COVID-19 still persists."...therefore the huge crowds is likely to aggravate the rise in COVID cases in Delhi," the official order said.

The department further explained that it was reported that such discounting is leading to unhealthy market practices being deployed purely for short term business gains by some licensees and is leading to distortion of markets. 

"The intent of the government in regard to discounting was to promote consumer choice and healthy competition and determination of price by market forces. The discounting of this nature was not the objective of the government while permitting the discounts in the new Excise Regime," read the statement.  

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The department ordered all L7Z licenses to strictly abide by Rule 54(3) of the Delhi Excise Rules, 2010 and not give concession, rebate or discount on the MRP of liquor. 

It added that if any violation is brought to the notice of the authorities, "actions as per Rules and Act as well as penal action as per the tender document shall be initiated against the defaulting licensee". 

Also read: Assembly Polls: EC seizes over Rs 1,000 cr worth of cash, drugs, liquor, freebies

Also read: Delhi orders discontinuation of discounts on MRP of liquor

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