Excise duty from alcohol sale is one thing all states impose, and can enjoy the revenue from the same. States from time to time change these policies to up the sales of alcohol and thereby get better revenues from these sales. Recently, a few states have changed their liquor policy to benefit tipplers, and in turn increase their revenues. This includes Delhi, where alcohol has become hugely cheaper after implementation of a new rule to privatise all liquor vendors and allowing them to offer discounts on the maximum retail price.
Let’s take a look at major liquor policy changes that were implemented recently in some states.
1. Delhi: Delhi excise department has announced reducing the number of ‘dry day’ to three in the national capital this year. Previously, this was fixed at 21 days. This comes in addition with a price drop at several stores following the privatisation of liquor vends. This adaptation by the liquor vends comes as a result of the Delhi government’s new excise policy, which permits competitive pricing that was not allowed before. Alcohol prices have come down by 30 to 40 per cent in the national capital. According to a report, a bottle of foreign brand alcohol Chivas Regal (12 years) is being sold at Rs 1,890 at a few stores in the national capital. Liquor store Whiskey Theka, operated by JSN Infratech LLP, is offering a bottle of premium alcohol brand Jack Daniels at Rs 1,885. The MRP of the same is Rs 2,730 in Delhi.
2. Mumbai: In a significant decision, the state government of Maharashtra under chief minister Uddhav Thackrey, allowed the sale of wine in supermarkets and walk-in stores. This means that tipplers do not have to go to exclusive wine shops to buy their bottles of wine. This decision is expected to benefit small wineries in the states, who use fruits, flowers and honey to produce wine. This in turn will benefit the farmers as wineries will be able to market their produce to supermarkets and walk-in stores.
3. Kolkata: The West Bengal government had in November last year decided to reduce the prices of Indian made foreign liquor, or IMFL, by as much as 20 per cent. This reduced the price of these liquors significantly in the state, boosting the sale of alcohol. According to a report by the Times of India, the state in December saw the highest ever revenue of Rs 2,000 crore following the price drop. Before this, liquor sales had gone down in the state during the pandemic.
4. Madhya Pradesh: The Madhya Pradesh government, as part of its new excise policy for the next fiscal year, allowed the sale of liquor at all airports and select supermarkets of four big cities. The government also decided to allow home bar permit to those with an income of Rs 1 crore or more annually. The government also decided to cut the prices of liquor by 20 per cent in the state.
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