Delhi new liquor policy to roll out soon; prices may increase, more premium stores likely

Delhi's new excise policy is reportedly expected to be notified in October. The government plans to increase excise duty and retail margins, which may lead to a rise in liquor prices in the national capital in the coming months.

According to a report in The Indian Express that cited a senior Delhi government official, the final draft of the new excise policy is ready. The proposal will be sent to the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu for approval after appointing a new excise commissioner. The government aims to notify the policy before the peak festival season, it said.

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Private players are unlikely to be included under the new policy. Key proposed changes include higher fixed retail margins and excise duty. Currently, Delhi has only government-run liquor shops where retailers operate with fixed margins.

The government also plans to increase the number of premium liquor stores, the report added. At present, retail margins are capped at ₹50 per bottle for Indian Made Foreign Liquor and ₹100 for foreign liquor. Officials said these fixed margins discourage shops from stocking imported liquor priced above ₹1,000, causing some consumers to buy from neighbouring cities like Gurugram and Faridabad.

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The new policy may remove the fixed-margin system. The government is also considering increasing excise duty. Delhi currently levies excise duty based on Wholesale Price slabs and liquor category. For Indian spirits, the duty ranges from 30% to 300%. Any increase would raise the tax component and liquor prices.

Officials indicated that serving timings for liquor at hotels, clubs and restaurants could also be changed.

Delhi has more than 700 liquor shops run by four government corporations. The new policy is being prepared after the previous AAP government’s liquor policy was scrapped following investigations by the CBI and Enforcement Directorate.