New Delhi: The Delhi government has decided to remove the 70 percent corona tax on alcohol. This decision of the government has been made before the hearing in the Delhi High Court on 19 June. Now additional corona tax will not have to be paid on the cost of liquor in Delhi. However, the government has increased VAT on alcohol prices by 5 percent.
According to an India Today report, the Delhi government has removed the Corona tax on liquor prices from today on 10 June. Now, those who buy liquor in Delhi will not have to pay a corona tax of 70 percent. At the same time, the government has added 5 percent extra VAT on the price of alcohol, so now the customers will have to pay 25 percent VAT on the liquor.
The High Court had sought an answer- Earlier, the Delhi High Court had asked the Delhi government to present its stand on a number of petitions challenging the recovery of 70 per cent special corona fee on the price of liquor of all brands in the national capital. The High Court had asked the Delhi government to present its stand on this issue till May 29. The next hearing in this case will be held on June 19.
Corona tax was imposed during lockdown 3.0 - Delhi government approved the opening of 150 government liquor shops on May 3, but a day after that the government imposed a special corona fee on liquor. The government's reason behind this was that there was a huge loss of revenue due to the lockdown. To increase the revenue, the Delhi government imposed a special corona fee of 70 percent on the sale of liquor.
235 Crore Earnings - Delhi Government had earned 235 crores in 27 days by selling liquor. The government earned a revenue of Rs 235 crore from liquor till May 30. The Excise Department said that the government had earned Rs 235 crore on the first day in Delhi. However, corona tax was not included in these earnings.
Why remove tax- According to Delhi government sources, there are about 850 liquor license shops in Delhi. The shopkeepers said that there has been a huge decline in sales due to taking Corona tax. After this, the government removed the corona tax on it.
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