Delhi government extends existing excise policy

The Delhi government has extended its prevailing excise duty-based policy

The Delhi government has extended its prevailing excise duty-based policy for the coming financial year 2024-25, officials on Monday said. The competent authority has granted approval for the continuation of the excise duty-based policy, for 2024-25, to grant wholesale licenses on the basis of the same terms and conditions of Licensing Year 2023-24, said an order issued by the government's excise department.

The wholesale licenses are allowed on same terms and conditions of excise duty-based policy that is in effect from October 1, 2023, till March 31, 2024, said the officials. Also, the terms and conditions of all licenses that are renewable every year, are also continued for Excise Year 2024-25, the excise department order said.

The necessary circulars for these retail and HCR (hotel, club, and restaurant) category licenses will be issued in the next few days, added the officials. The excise duty-based policy regime, under which retail liquor business shifted from private firms to Delhi government enterprises, was implemented in September 2022 and was extended twice earlier in April 2023 and again in October 2023.

The policy was brought after the Delhi government's ambitious excise policy 2021-22, implemented on November 17, 2021, ran rough weathers due to allegations of irregularities in its formulation and implementation. The policy was scrapped by the Arvind Kejriwal government days after Delhi LG VK Saxena recommended a CBI probe in the alleged irregularities.

The government had promised to bring a new excise policy that has yet not been ready, the officials said. A committee formed by the government has readied a draft for the new policy that is yet to be taken up by the government, they said.

Under the existing excise policy, four Delhi government corporations run 684 liquor stores across the city.