Last Updated: 22 March 2024
New Excise policy was
-- Implemented on 17 November 2021
-- Withdrawn on 31 August 2022
First scam was alleged in India where Govt revenue increased 😃
-- Details & Proof further in the article
New Excise policy not about selling more liquor, but curbing illegal sales
Shifts Revenue model to license fees based model[4]
-- Govt revenue is majorly earned through licence fees
-- No reason to do illegal sale
Feedback from public
The Government received an overwhelming 14,671 comments/ feedback from the stakeholders/general public before launching the new Policy
Objectives
Stop black market sales/Elimination of liquor mafia
=> Legitimate Sales will increase
=> Liquor Company's earnings will increase
Ensure equitable distribution of liquor
=> Illegal sales & Illegal Liquor will be curbed
=> Legitimate Sales will increase
=> Liquor Company's earnings will increase
Increase Govt revenue
More Official & legitimate sales => More revenue for Govt
People get quality liquor & services
Incentive to under-report sales
The main income from old policy was from excise duty on sale. So sale was under reported
Un-even distribution of liquor shops
i.e. leading to illegal liquor sales, poor quality liquor and encouraging black marketing
Poor Retail experience
“The current retail experience is like a jail. When you go to a shop, there is a grille and people rush and throw money to buy liquor. There is no dignity. It will no longer be like that,” -- Manish Sisodia, March 2021
Sufferings of Liquor store's neighbourhood
People used to drink in public places near these liquor shops causing public inconvenience
Inefficiency of Govt shops[5]
40% Private individual shops used to sell more liquor than 60% Govt corporation run shops
i.e. an estimated loss of about Rs. 3500 crore of excise revenue annually[3:2]
The following table gives an overview of what the new Excise policy is about:
| Old Excise policy | New Excise policy | |
|---|---|---|
| Distribution of liquor shops | 58% city underserved | Average 3 shops per ward |
| Total Liquor shops | 864[6] | Max 849 (only 468[7] as of july 2022) |
| Liquor shops owned by | 475 by Govt, 389 by individuals[6:1] |
Open Auction Private companies & individuals |
| Revenue model / Main revenue source for Govt |
Mainly Excise duty | Mainly License fees |
| Liquor consumption outside or near shop |
Norm i.e. inconvenience to public | Strictly not allowed (responsibility of shop owner) |
| Mandatory CCTV surveillance | No | Yes |
| Shop experience | Mostly small crowded shops | Luxorious Experience -Min. 500 sq ft shop -Showroom style experience -Separate counter for women |
First scam in India where Govt revenue increased :)
All below Data points are as per Delhi assembly official record. Reference Link to Delhi Assembly site[8:1]
| Policy Type | Period | Govt Revenue (in crores) |
Num of Shops |
|---|---|---|---|
| Old policy | 17 Nov 2018 - 31 Aug 2019 | 5342 | 864 |
| Old policy | 17 Nov 2019 - 31 Aug 2020 | 4722 | 864 |
| Old policy | 17 Nov 2020 - 31 Aug 2021[9] | 4890 | 864 |
| New policy | 17 Nov 2021 - 31 Aug 2022[9:1] | 5576 | only 468* (out of 849) |
| New policy Projected ** | Full Year[9:2] | ~9500 | with all 849 shops |
* as of Jul 2022 due to interference & intimidation[7:1]
** Since license fees is the main income source, the projected revenue is independent of actual liquor sales and is proportional to number of active shops.
Similar policy approved in Punjab in June 2022 [10], lead to an increase of 41% excise revenue 2022-2023.[11]
Amid allegations of earning through commision from liquor shops[3:4], BJP
New Excise policy was withdrawan on 31 August 2022 under pressure [4:1]
Effect of above reforms seen in table below :
| Period | Excise Revenue[3:7] | Comments |
|---|---|---|
| 2014-2015 | 3400 crore | pre AAP govt |
| 2015-2016 | 4240 crore | post reform on excise officers |
| 2017-2018 | 5200 crore | post further steps to plug leakages |
REFERENCES:
https://webcast.gov.in/events/MTU1Ng--/session/MzY1MA-- (6:16:00 onwards) ↩︎ ↩︎ ↩︎
https://delhiexcise.gov.in/pdf/Delhi_Excise_Policy_for_the_year_2021-22.pdf ↩︎ ↩︎ ↩︎
https://www.outlookindia.com/website/story/heated-debate-in-delhi-assembly-over-new-excise-policy-sisodia-says-bjp-rattled/408313 ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
https://timesofindia.indiatimes.com/city/delhi/aap-bjp-spar-in-delhi-assembly-over-excise-revenue-losses/articleshow/99039948.cms?from=mdr ↩︎ ↩︎
https://timesofindia.indiatimes.com/city/delhi/allow-private-liquor-vends-to-operate-too-traders-to-delhi-government/articleshow/93399366.cms ↩︎
https://www.ndtv.com/india-news/days-after-lt-governors-red-flag-delhi-reverses-new-liquor-excise-policy-3207861 ↩︎ ↩︎ ↩︎
https://www.indiatvnews.com/news/india/delhi-liquor-shops-to-be-shut-from-monday-as-govt-withdraws-new-excise-policy-latest-updates-2022-07-30-796153 ↩︎ ↩︎
http://delhiassembly.nic.in/VidhanSabhaQuestions/20230322/Starred/S-14-22032023.pdf ↩︎ ↩︎
https://theprint.in/india/aap-bjp-spar-in-delhi-assembly-over-excise-revenue-losses/1476792/ ↩︎ ↩︎ ↩︎
https://www.business-standard.com/article/current-affairs/punjab-cabinet-approves-excise-policy-2023-24-with-rs-9-754-cr-target-123031001320_1.html ↩︎
https://indianexpress.com/article/cities/chandigarh/punjab-excise-revenue-increases-aap-8543885/ ↩︎
https://www.thequint.com/news/india/bjp-chakka-jam-delhi-government-new-excise-policy-liquor#read-more#read-more ↩︎
https://timesofindia.indiatimes.com/city/delhi/bjp-to-seal-14-more-liquor-shops-in-delhi-today-as-it-intensifies-protests/articleshow/90551981.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst ↩︎ ↩︎
https://www.indiatvnews.com/news/india/delhi-liquor-shops-to-be-shut-from-monday-as-govt-withdraws-new-excise-policy-latest-updates-2022-07-30-796153 ↩︎
https://www.thehindu.com/news/cities/Delhi/l-g-vinai-kumar-saxena-recommends-cbi-probe-into-delhi-excise-policy-deputy-cm-sisodias-role-under-lens/article65669885.ece ↩︎
https://indianexpress.com/article/cities/delhi/people-consuming-alcohol-in-public-places-to-face-fines-of-up-to-rs-10000-3104185/ ↩︎
