The Delhi government’s excise committee, chaired by Public Works Department (PWD) Minister Parvesh Verma, met on Friday to deliberate on revising liquor tax rates and maximum retail prices (MRPs) in the national capital, news agency PTI reported
The committee, which is drafting a new excise policy, is exploring measures to increase government revenue and reduce losses to neighbouring cities such as Gurugram, Faridabad, Ghaziabad, and Noida, where lower excise duties and MRPs encourage consumers to buy liquor outside Delhi.
Excise tax rates in Delhi have remained unchanged since 2014, while MRPs were last revised three years ago. Officials noted that adjusting these rates could help optimise liquor trade potential and enhance revenue collection for the government.
Chief Minister Rekha Gupta has said her administration aims to introduce a “transparent and socially responsible” excise policy that balances business interests with fiscal objectives.
The draft policy is expected to be finalised in the next two months before being released for public consultation. Following feedback, it will require approval from the Delhi Cabinet and the Lieutenant Governor before notification. The panel has sought input from industry stakeholders, including manufacturers, wholesalers, and retailers, on issues such as excise collections, retail margins, the ease of doing business, the legal drinking age, and the participation of private players.
The PTI report said the current uniform retail margins across liquor categories discourage vendors from stocking premium or popular brands, leading to limited availability and excessive promotion of lower-end labels.
Delhi’s excise revenue has grown steadily, rising from Rs 6,762 crore in 2021-22 to Rs 7,766 crore in 2024-25. However, the government reduced its target from Rs 7,000 crore to Rs 6,000 crore for 2025-26 due to shortfalls in the first five months.
The pricing gap with NCR cities has created substantial challenges. In 2022, neighbouring markets saw a 20 to 25 per cent decline in liquor sales when Delhi offered competitive pricing under its previous policy. Industry officials noted that about 100 people were arrested for bringing liquor from Delhi to Noida, with more than 10,000 bottles seized.
Delhi currently operates 713 liquor stores as of June 2025, up from 584 in June 2024. The retail network is managed by four government corporations, which are Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), Delhi Tourism and Transportation Development Corporation (DTTDC), Delhi State Civil Supplies Corporation (DSCSC), and Delhi Consumers’ Cooperative Wholesale Store (DCCWS). |
