Under the new excise policy of the Delhi government, with the opening of private shops from November 17, liquor may become costlier by eight to nine percent. The Excise Department of the Delhi government said in an order on Thursday that the wholesale prices of all types of liquor are likely to increase by eight to nine per cent. The Excise Department is currently in the process of fixing the Maximum Retail Price (MRP) of the liquor brands to be registered in Delhi.
In this regard, a liquor trader said, “The increase in wholesale price can lead to an increase in the prices of liquor by at least five to ten percent. However, how much the prices will increase will be known only after the implementation of the new retail system as per the excise policy for 2021-22.
According to the order, excise duty and value added tax (VAT) have been added to the license fee in the new excise policy 2021-22. Excise duty and VAT will be levied at the rate of one percent each on the wholesale price, on the basis of which the price of liquor supplied with the retailers will be worked out.
“The wholesale price is likely to increase by about 8-9 per cent due to the revised parameters included in the cost of Indian and foreign liquor under the new Excise Policy 2021-22,” the order said. A similar effect could be had on other categories of