Delhi Cabinet has decided to withdraw the special corona fee levied at 80 per cent on the MRP placed on the sale of all types of liquor in the State. The order will come into effect from June 10 onwards.
The Confederation of Indian Alcoholic Beverages Companies (CIABC) had been demanding from the Delhi government to roll back 70 percent special corona fee put on liquor sales for the last week.
The organisation has said the high tax rate was drastically affecting the sale of alcohol in the national capital. It wanted the government to bring down the cess to a realistic and sustainable level, but now the government has decided to remove it altogether.
The liquor manufacturers' association had stated that the sale of alcohol in the national capital dropped 58 percent as compared to what it was last year.
Alcohol sales of neighbouring states like UP and Haryana seem to be bouncing back as there was only a 10-15 percent additional tax imposed on alcohol in these states.
In a letter written to Deputy Chief Minister Manish Sisodia, CIABC Director-General Vinod Giri had claimed that national capital's alcohol business was slowly shifting to Haryana and Uttar Pradesh due to the difference in retail prices caused by taxes.
It may recalled that in May, the Delhi government has imposed a 70 percent corona fee on the MRP on types of liquor.
By the end of May, the excise department witnessed a total sale of Rs 234 crore, which totalled up to Rs 150 crore in corona fees and almost the same amount as excise duty.