The Delhi government has withdrawn the 70 percent corona tax on alcohol from today. The Cabinet has however decided to increase the VAT “from 20 percent to 25 percent levied on all categories of liquor sold in the jurisdiction of NCT of Delhi." The "special corona fee" on the Maximum Retail Price (MRP) of liquor bottles was imposed last month as the government, hit badly due to the coronavirus lockdown, looked to earn additional revenue.
According to the official, the government earned only Rs 235 crore from liquor, excluding the "special corona fee", last month. Sources in the excise department said due to the higher "special corona fee", people were buying liquor from nearby cities, where it is cheaper. The sale of liquor was allowed from May 4, when the third phase of the nationwide lockdown began. On May 5, the Aam Aadmi Party (AAP) government imposed the "special corona fee" on liquor. The decision was taken at a cabinet meeting chaired by Chief Minister Arvind Kejriwal.