Delhi: AAP government pins hope on liquor policy to boost income

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By Express News Service

NEW DELHI:  Deputy Chief Minister Manish Sisodia on Wednesday said the socio-economic crisis caused by the lockdowns had resulted in the AAP-led government earning 41 per cent less revenue than its estimated target for 2020-21 financial year, and 23 per cent loss in the 2021-22 fiscal.

But under the new excise policy, the government is expecting to earn Rs 10,000 crore from auctioning of liquor shops opposed to the earlier Rs 6,900 crore, fetching almost Rs 3,500 crore extra every year after November, the deputy CM said.  

“We have kept very moderate budget estimates for this year, but the tax collection is still less than expected. It is very concerning, and so the government is withholding most expenses, except for paying salaries and Covid-related expenses. It is tough for all state governments, but tougher for Delhi government because we don’t receive any help from the Centre,” Sisodia said.

The collection of goods and services tax (GST) is 23 per cent less, while incomes from value-added tax (VAT) have plummeted by 25 per cent, and excise collection has seen 30 per cent dip.

The taxes coming from stamp duty and the sale of motor vehicles are reduced by 16 per cent and 19 per cent.

The state government’s revenue will be reduced by Rs 8,000 crore as the centre will stop GST compensation from next year, Sisodia said further.

“Big reforms were made under the new excise policy, considering the fact that Delhi had a big number of excise tax evaders. The license fee was very nominal, about `8-10 lakh, but the excise fee and VAT was 250-300 per cent. We converted the excise fee into license fee so the license fee increased up to Rs 6.5-7 crore per shop, and due to this revolutionary reform, the government will receive Rs 3,500 crore extra revenue in the next 12 months,” he added.



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