Arvind Kejriwal government's new excise policy failed to boost revenue

New Delhi: The new Excise Policy 2021-22 of Delhi government was unable to meet its target of boosting revenue due to various reasons including surrender of licenses by retailers and wholesalers, sources claimed citing official documents on Monday.

However, the Aam Aadmi Party alleged that the "whole chaos surrounding the New Excise Policy is nothing but a ploy of the BJP-ruled central government.

The first quarter revenue in current fiscal year 2022-23 was Rs 1,485 crore which is 37.51 per cent less than the budget estimates of Rs 2,375 crore, sources claimed citing a Cabinet note of Delhi government sent for approval of LG to withdraw the new Excise Policy 2021-22.

Earlier, Deputy Chief Minister Manish Sisodia on last Saturday had announced government's decision to withdraw the Excise Policy 2021-22 and revert to old excise policy regime and running liquor vends through its agencies for next 6 months from September 1.

Licenses issued for retail and wholesale liquor sale in Delhi have been extended till August 31 by the government to prevent shortage during transition period.

Delhi BJP president Adesh Gupta and Leader of Opposition in Assembly Ramvir Singh Bidhuri also cited the Cabinet note in a press conference and claimed that the AAP's new excise policy had failed forcing the Kejriwal government to withdraw it.

They claimed that as per documents the estimated excise revenue of Kejriwal government in 2019-20 was Rs 8,911 crore but only Rs 7039 crore were realised.

"Not only this after new policy came into being there was estimation of excise revenue going up but in 2021-22 the revenue came down to Rs 6,720 crore," Gupta said.

Reacting over the Opposition's claims, the AAP said, "the whole chaos surrounding the New Excise Policy is nothing but a ploy of the BJP-ruled central government, who is their nominee itself." "For the sake of politics, they have taken to antics that are going to hurt the economic situation of the national capital. The BJP and its nominee LG, are the same people who have been repeatedly threatening liquor licensees by coercing the ED & CBI to take their agenda forward," the AAP said in a statement.

Sources also said 9 zonal licensees have surrendered their licenses while three others intended to do so. Also, four of 14 wholesale licensees opted out to discontinue their licenses.

"The revenue decline on account of surrendered zones is estimated to be around Rs 193.95 Crore per month. This is despite sale of liquor going up in the city," sources said citing the Cabinet note.

It was suspected that the licensees who were still operating had a "windfall gain" due to others quitting the business, they said.

The new Excise Policy provided for 849 retail liquor vends in Delhi divided into 32 zones, however, only 468 were operational till July 31.

The retail licenses had expired on July 31 after which they have now been extended for one month by the government.