Delhi’s tax revenue doubles in one month due to liquor sale, VAT on fuel | Delhi News


People outside a liquor shop in Delhi

NEW DELHI: A partial opening of the economy and levy of special corona fee on liquor has had a positive impact in Delhi with tax revenue going up by almost double in the first three weeks of May compared with last month. While the city government had collected Rs 323 crore as tax till April 23, the revenue in May has crossed Rs 600 crore so far. However, this is about 20% of what was earned in May 2019.
Earlier this month, the government had levied 70% special corona fee on the MRP of liquor bottles. The value added tax (VAT) on diesel and petrol was also revised to 30%. Earlier, VAT on diesel was 16.75% and 27% on petrol. This helped shore up some revenue.
Rs 100cr from spl liquor fee in just 15 days
Sources said the excise department earned nearly Rs 100 crore as special corona fee within just 15 days. With the Centre allowing some relaxations in Lockdown 4.0, the department was able to open about 150-odd liquor vends in the city from May 4. The new tax was levied a day later.
With more liquor vends likely to open from Saturday, officials said the tax collection is expected to improve further. “Apart from the corona fee on liquor and enhanced VAT on fuel, a small amount was also earned through registration and stamp duty on the sale of properties,” said an official. Delhi government had opened sub-registrar offices on May 4.
With the opening of markets, commercial establishments and more, officials said the city’s economic condition was slowly improving. “We had projected a total tax collection of Rs 44,100 crore in 2020-21. But the actual collection will be far less,” said an official.

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