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Delhi to scrap special corona fee on alcohol but prices to remain high

The alcohol rates won't be at the pre-COVID-19 level as the AAP government has increased the value added tax (VAT) on all categories of liquor from 20 to 25% from June 10

twitter-logoBusinessToday.In | June 10, 2020 | Updated 14:52 IST
Delhi to scrap special corona fee on alcohol but prices to remain high
Chief Minister Arvind Kejriwal had last month announced the imposition of "special corona fee" on the MRP of liquor bottles

Although liquor gets cheaper in Delhi from Wednesday following the state government's decision to scrap 'special corona fee', Delhiites will still have to shell out more than what they used to before coronavirus outbreak.

The rates won't be at the pre-COVID-19 level as the AAP government has increased the value added tax (VAT) on all categories of liquor from 20 to 25% from June 10.

Chief Minister Arvind Kejriwal had on June 8 announced that liquor stores across Delhi will sell alcohol at cheaper prices from Wednesday (June 10) following his government's decision to scrap special corona fee levied at 70% of MRP (maximum retail price) on its sale. However, the VAT was also increased alongside.

Also Read: Liquor prices to come down as Delhi govt removes 70% corona tax on alcohol

The decision regarding this was taken at a cabinet meeting chaired by Delhi Chief Minister Arvind Kejriwal on June 7.

Chief Minister Arvind Kejriwal had last month announced the imposition of "special corona fee" on the MRP of liquor bottles as its revenues were hit badly due to coronavirus-induced lockdown.

However, this turned out to be counterproductive as, despite an initial surge, the sale of liquor fell drastically in Delhi in May.

Following this, liquor makers urged the government to remove the 70 per cent corona pandemic cess imposed on the sector.

Several other state governments also imposed additional tax on liquor last month, after sales resumed in the third phase of the lockdown.

States like Andhra Pradesh, Delhi, and West Bengal imposed 75, 70, and 40 per cent additional levy, respectively on liquor.

Also Read: Alcohol makers urge Delhi govt to lower 70% liquor cess as sales dip

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