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May 5, 2020

Delhi govt announces 70% ‘special corona cess’ on alcohol from 5 May by amend Excise Rules

by facelesscompliance in Compliance Law

Delhi govt announces 70% ‘special corona cess’ on alcohol from 5 May by amend Excise Rules

Union Ministry of Home Affairs had allowed non-essential standalone shops, or those in neighbourhoods or residential complexes to function in its guidelines for extending coronavirus lockdown till May 17. This allows certain alcohol shops to function in all zones – Red, Orange and Green to operate till 7 pm. Non-essential shops in containment zones will remain closed.

The first day of lockdown relaxation in Delhi saw long lines with customers breaking social distancing rules and a large number of people collected outside liquor stores

Tax Expert says that other states could also implement similar taxes in the coming days

A day that began with Delhi’s people eagerly welcoming the reopening of liquor outlets gradually turned into chaos at overcrowded shops before ending late on Monday with the state government imposing an unexpectedly high 70% ‘Special Corona Fee” on all brands and categories of liquor. The revised prices will come into effect from Tuesday 5 May 2020

“Extraordinary situations require extraordinary measures. We need to take this step to improve Delhi’s financial condition,” deputy chief minister Manish Sisodia 

This would mean that a bottle of liquor costing Rs 100 would now cost Rs 170.

Delhi Excise Rules are amended to levy the 70% Fee on all Alcohol Consumption off premises.

The ‘Special Corona Fee’ is meant to bolster government revenues, which have taken a severe hit due to coronavirus lockdown.

On Sunday, he had said that the government’s earnings and economy have been badly affected due to the coronavirus-induced lockdown. Citing revenue figures, he had said the Delhi government earned Rs 3,500 crore in April 2019, but only Rs 300 crore in April this year. Delhi has been under lockdown since March 23.

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It would be intresting to see if Maharashtra will follow. The revenue of all states has been lower in April because of low economic activities. Let’s wait and watch which states will follow and increase cesa on alcohol consumption