New Delhi: With the new excise regime became operational from November 17, the Delhi government told the reduction in value added tax on liquor on Friday.
However, industrial experts expect retail prices to rise 8-10%.
The Delhi Finance Department The government told some amendments in the Delhi Value Tax Act, 2004, which now mandated 1% PPN remains in alcohol sold by wholesale traders to retailers from November 10 November, foreign liquor and liquor India made liquor From retailers have been reduced to 1% of November 17.
However, for consumption in places of hotels, clubs and restaurants, VAT will remain 25%.
“While PPN first 25% and has been reduced to 1%, this will not have a real impact on the price because the entire price of pricing has been changed,” explained Vinod Giri, Director General, Confederation of Indian alcoholic beverage companies.
He said that instead of the nominal level charged for retail licenses plus customs and VAT, the government has taken into account this into the base price for auctions.
The license holder who bid more than the base price, Rs 225 Crore for most locations, will want to restore the number and several license holders, Giri said, has demanded a 30-35% increase at the maximum retail price.
Such an increase will mean Delhies buy cheaper liquor in neighboring countries.
“Look at the pattern, you are realistically seeing a new price of 8-10% higher than before,” Giri said.
With VAT and excise included in the cost of licensing, Delhi government officials said prices will now depend on competitive strength.
“This new policy allows discounts too, so we can really expect prices to fall,” officially added.
The Excise Ministry has requested all the current liquor license holders, from the guest house to restaurants and hotels, to migrate to the new excise system on November 16.
They also have to pay differences in previous and new license fees for the period from November 17 to 31 March 2022.