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Delhi liquor prices set to rise as private sales are set to open from November 17 under new excise policy


Liquor prices in the city could rise as private distributors open from November 17 under the Delhi government’s new excise policy.

The Delhi government’s excise department, which is in the process of setting the maximum retail price (MRP) for trademarks to be registered in Delhi, said in an order on Thursday that wholesale prices of all types of alcohol are expected to increase. from 8 to 9. percent.

“The increase in the wholesale price will lead to an increase of at least 5-10% in the MRP of alcohol, although the real effect will not be realized until after the new retail system is put in place according to to the excise policy for 2021-2022, “said a liquor dealer.

Senior ministry officials did not respond when reached for comment. In the new excise policy 2021-2022, excise duties and VAT have been incorporated into the license fee. A nominal excise tax and VAT at the rate of 1% each on the wholesale price (WSP) will be levied to arrive at the landing price for the retailer, the order said.

The impact on WSP due to the incorporation of various factors such as 2% central sales tax, wholesaler profit margin, import pass fees and freight and handling charges, such than approved in excise policy 2021-22, will result in 10 to 25%. increase for some brands of whiskey (foreign alcohol made in India or IMFL), with a per unit fluctuation of 8 percent (Royal Stag Premier) to 25.9 percent (Blenders Pride Rare).

“Due to the revised parameters incorporated into the Indian and foreign liquor cost map in accordance with the new excise policy 2021-22, the upcoming new WSP is expected to increase by around 8-9%,” the decree said.

So far, the majority of retail sales in Delhi have been handled by city government agencies which will close on November 16. About 260 private stores were closed on September 30 in preparation for the implementation of the new excise policy.

It would be reasonable to assume that since all sales will be operated by private business entities in a competitive market environment, they would operate at peak efficiency and the size of the market in terms of number of drums sold is likely to show a significant increase. compared to 2019-20, the order shown.

The cap of Rs 50 as retail margin on the sale of IMFL and Rs 100 on the sale of foreign alcohol has been removed. There will be no cap on the retail margin of IMFL, foreign liquors, beer and wine and competitive market forces will monitor the selling price to the consumer, according to the order.

In addition, a rebate on matrimonial real property has been permitted in excise policy 2021-22 to implement competitive market forces. “It is important that the consumer is not overwhelmed by the increase in prices. The changes brought about by the new excise policy will need a reasonable time to manifest in the market.

“In the general interest of consumers in Delhi, to prevent interstate smuggling, the MRP for 2021-2022 should as much as possible be in the same range as that prevailing in Delhi,” he said.

The impact of increasing the WSP (if any) within the parameters approved for the year 2021-22 must also be considered when setting the MRP, the ordinance said. The Excise Commissioner will set the MRP for each product after taking into account the input from license holders and the price of the product in the neighboring states of Haryana, Uttar Pradesh, Punjab and Rajasthan.

Licensees either requested a flat-rate percentage increase to the existing MRP or suggested an ad valorem formula to arrive at the MRP. The prevailing MRP in Delhi was compared to that of neighboring states and was found to be generally lower.

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