Overview
- Multiple reports say the final draft of Delhi’s new excise policy is ready and the government aims to notify it in October once a new excise commissioner is appointed and the Cabinet and lieutenant governor give approval.
- Proposed measures include increases to excise duty charged by Wholesale Price slabs and a shift away from fixed per-bottle retail margins toward margin structures that vary by price.
- Officials and industry voices warn that raising excise duty lifts the taxable base, which then magnifies retailer margins and produces a multiplier effect that will push up retail prices for consumers.
- Removing fixed margins is intended to make it viable for government-run shops to stock more premium imported liquors, but higher duties mean some brands could still cost more in Delhi than in neighbouring cities.
- The move follows last year’s ministerial review of the excise regime and a reversion to government-run retail after earlier policy probes, and it is timed to boost revenue before the peak festival season.