New Delhi: The Kejriwal-led Delhi government has decided to withdraw 70 percent 'special corona fee' levied on the maximum retail price on all categories of liquor with effect from June 10, an official said.
However, the AAP government, increased the Value Added Tax (VAT) on all categories of liquor from 20 per cent to 25 per cent, the official added.
The decision to withdraw the new tax was taken at a cabinet meeting on Saturday chaired by Chief Minister Arvind Kejriwal.
The Kejriwal government had imposed a 'Special Corona Fee' on liquor from May 5, as the government looked to earn additional revenue, hit badly due to the coronavirus lockdown.
The liquor sale was allowed in the national capital from May 4- with the starting of lockdown 3.It was closed since the lockdown was imposed on March 25. While the Delhi government hoped to earn more revenue through liquor sale, it has collected only about Rs 235 crore, excluding the now-withdrawn 'special corona fee', between May 4 and 30.
As per reports, there are approximately 800 liquor shops in the city including those run by government agencies and private individuals and Delhi government earns revenue of Rs. 5000 crore every year from the sale of liquor.
Notably, revenue generation of the government was badly hit by the coronavirus-induced lockdown.
As per media reports, the sale of liquor saw a steep decline in the national capital in May and due to the 70% 'special corona cess' imposed on alcoholic beverages.
In the Budget 2020-21, out of the government's total expectation in the tax revenue, 14 per cent or Rs 6,300 crore was from the State Excise.
The new financial year started on April 1 and till May 3, no sale was done due to the lockdown due to coronavirus.
Four government corporations -- Delhi Tourism and Transportation Development Corporation; Delhi State Industrial and Infrastructure Development Corporation; Delhi State Civil Supplies Corporation Limited; and Delhi Consumer's Cooperative Wholesale Store -- control the sale of liquor with about 475 shops.
With inputs from IANS
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