Delhi Govt Withdraws 70% Corona Fee, Increases VAT on Liquor Sale

The government has decided to raise the Value Added Tax from 20 to 25% on liquor in Delhi, officials said

A man walks away after buying liquor from a wine shop that was opened amid COVID-19 lockdown after the authorities permitted sale of liquor with certain restriction, at Kalyanpuri in New Delhi, Tuesday, 5 May 2020. Long queues were witnessed outside liquor shops in Delhi despite imposition of 70 percent as coronavirus fee on the sale of liquor.

(Photo: PTI/Atul Yadav)

A month after implementing a ‘special corona fee’ on the sale of liquor in Delhi, the government on Sunday, 7 June, announced that it was withdrawing the 70% cess on maximum retail price on all categories of liquor, with effect from 10 June, ANI reported.

However, the government has decided to raise the Value Added Tax (VAT) from 20 to 25% on liquor in the national capital, officials reportedly said.

In an order issued on 4 May, the Finance Department had imposed the corona fee, describing it as the 70 per cent of the maximum retail price on all categories of liquor sold through retail licensees for consumption “off” the premises.

The order signed by Deputy Commissioner (Excise) also asked the retailers to compile the data of the sale, saying the collected Special Corona Fee shall be reimbursed to the Government on a weekly basis.

The coronavirus lockdown has reportedly cost the state government over Rs 645 crore in revenue, since 25 March.

(With inputs from Hindustan Times)