Wholesale Price of Liquor Likely to go up by 8-9% in Delhi as New Excise Policy Kicks in | Earth Indian

New Delhi: The prices of liquor prices in the national capital might go up as private vends open from November 17 under the new excise policy of the Delhi government.

Issuing an order, the Delhi government’s excise department, which is in the process of fixing maximum retail price (MRP) of brands to be registered in Delhi, said the wholesale prices of all types of liquor are likely to increase by 8-9 per cent.

“The increase in wholesale price will lead to at least 5-10 per cent increase in MRP of liquor, although the actual effect will be realised only after the new retail system as per the excise policy for 2021-22 is in place,” a liquor trader told news agency PTI.

“In the new Excise Policy 2021-22, the excise duty and VAT have been subsumed in the licence fee. A nominal excise duty and VAT at the rate of 1 per cent each on wholesale price (WSP) will be levied to arrive at the landing price to the retailer,” the order stated.

As per the latest update, all the 849 vends will be operated by private entities from November 17 under the Excise Policy 2021-22.

So far, the majority of retail sale in Delhi was handled by city government’s agencies that will shut shop on November 16. About 260 private vends were closed on September 30 in view of the implementation of the new excise policy.

“It would be a reasonable assumption that since all vends shall be operated by private business entities in a competitive market environment, they would operate at their maximum efficiency and the market size in terms of number of casks sold is likely to show a significant increase as compared to 2019-20,” the order stated.

 

(With inputs from PTI)

By Shivam Urkude || Earth Indian