Riding the wave of increased sales attributed to a growing number of shops and improved brand availability, the revenue of Delhi government’s excise department saw a notable 9% increase in the third quarter of 2023-24 compared to its earnings in the same period of the preceding fiscal year.
According to data, the excise department generated a combined sum of INR 1,889.4 crore from excise duty and value-added tax on liquor sales through approximately 635 liquor stores and 920 hotels, clubs, and restaurants from October 1 to December 31 of the current year. In comparison, during the third quarter of the previous fiscal year, the excise department’s revenue from liquor sales amounted to INR 1,725.6 crore.
Authorities mentioned that the consumption of alcoholic beverages, including beer, whiskey, vodka, gin, wine, and other liquor, has been consistently on the rise in the capital.
“In last eight days of December 2023, Delhiites bought nearly 1.4 crore liquor bottles from stores worth more than INR 245 crore. This is much higher than the last year’s sales of 1.1 crore liquor bottles of the total sale value (maximum retail price) of INR 218 crore during the corresponding period,” said an official.
On the eve of the New Year, liquor shops in the capital sold over 24 lakh bottles of various brands and sizes, amounting to almost INR 48 crore. This represented a significant uptick from December 31, 2022, when over 20 lakh bottles, valued at INR 45 crore, were sold in Delhi in a single day.
The revenue generated through excise duty and value-added tax on liquor holds significant importance as a source of income for the Delhi government. During the presentation of the 2023-24 budget, the finance department at that time projected a total tax revenue collection of INR 53,565 crore from various sources, with excise accounting for 14% at INR 7,365 crore. Goods and services tax (GST) were anticipated to contribute nearly 70% to the total tax revenue, while stamp duty and vehicle registration were expected to make up the remaining 16%.
Authorities have stated that, from April 1 to December 31, 2023, the excise department has accumulated a total of INR 5,453.6 crore in the first three quarters of the fiscal year 2023-24.
Delhi Govt Optimistic About Surpassing Revenue Projections:
“Going by the trends, we hope to cross the revenue projection made in the budget estimates,” said a Delhi government official.
Authorities have noted that the festive season comprising Diwali, Christmas, and New Year consistently experiences record-breaking sales each year, with a substantial influx observed at all retail establishments in the city during this period.
Delhi government manages the retail trade of liquor through its four corporations: Delhi State Industrial and Infrastructure Development Corporation, Delhi Tourism and Transportation Development Corporation, Delhi State Civil Supplies Corporation, and Delhi Consumers’ Cooperative Wholesale Stores.
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