Liquor Prices To Shoot Up In Delhi From Today

Hike in petrol prices may not have brought tears in the eyes of Delhiites, but here is another expected price rise that could certainly make many cry. The rates of liquor is likely to increase by 8 to 12% as the revised excise duty regime and increased retailers margin component on liquor, notified by the Delhi government, would come into effect from Tuesday (July 1).

In order to promote fair play and make the liquor trade look more profitable, the Delhi government has decided to increase the retailer's profit margin.

As per the revised list, the retailer's profit margin component on Beer, Alcopop has been increased from the existing 8% to 12% of wholesale price. The retailer's profit margin on Indian Made Foreign Liquor (IMFL) has been hiked from the existing 15-18% of the wholesale price. The retailer's profit margin on country liquor (Delhi Medium Liquor) has moved up from 3 to 6%.

The rates of beer have been increased by Rs 5 and Rs 20 per bottle and prices of IMFL have gone up by Rs 25 and Rs 40 per bottle.

With the increase in rates, the Department of Excise Entertainment & Luxury Tax aims to collect additional Rs 250 crore as it was unable to meet its revenue target of Rs 3,200 crore in the last financial year and earned revenue of Rs 3,151 crore. (Image: Thinkstock)