Delhi Government Extends Current Excise Duty Policy For The Year 2024-25

The Delhi government has announced the extension of its current excise duty policy for the fiscal year 2024-25, providing continuity in wholesale liquor licensing terms. According to officials, the decision to extend the policy was confirmed by the competent authority, ensuring that wholesale licenses for the upcoming year will be granted under the same terms and conditions as those of the previous licensing year, 2023-24.

Officials from the government’s excise department clarified that the wholesale licenses will be issued based on the existing excise duty policy, which has been in effect since October 1, 2023, and is set to continue until March 31, 2024. This decision aims to maintain consistency and stability in the licensing framework, offering businesses the assurance of operating under familiar conditions for the forthcoming year.

Furthermore, the terms and conditions applicable to licenses that require annual renewal will also remain unchanged for the Excise Year 2024-25. This means that businesses holding licenses subject to yearly renewal will experience no alterations in their licensing obligations, providing them with certainty and predictability in their operations for the upcoming licensing period.

Upcoming Circulars and Policy Development

The excise department officials revealed that the necessary circulars outlining the specifics of retail and HCR (hotel, club, and restaurant) category licenses will be issued in the coming days. This move signifies the government’s commitment to transparent communication and timely dissemination of information regarding licensing procedures and requirements. Meanwhile, efforts are underway to develop a new excise policy to replace the existing one.

The excise duty-based policy regime, which transferred retail liquor business operations from private firms to Delhi government enterprises, was initially implemented in September 2022. Since then, it has been extended twice before, first in April 2023 and then again in October 2023. The decision to extend the policy comes after the government’s ambitious excise policy for 2021-22 faced challenges due to allegations of irregularities.

The previous excise policy, implemented on November 17, 2021, faced criticism and was eventually scrapped following recommendations by Delhi LG VK Saxena for a CBI probe into alleged irregularities. Despite assurances from the government to introduce a new excise policy, no concrete plan has materialized yet. However, a committee formed by the government has prepared a draft for the new policy, which awaits government approval.

Under the current excise duty policy, four Delhi government corporations oversee the operation of 684 liquor stores across the city. This extension of the prevailing policy for the upcoming fiscal year aims to maintain stability and consistency in the liquor licensing framework, providing businesses with a conducive environment for their operations.

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