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Good news for tipplers, new excise policy implemented

Good news for tipplers, new excise policy implemented
Now, the city tipplers will happily say cheers as the new excise policy has come into effect from Saturday, paving the way for establishment of microbreweries at hotels and restaurants in the national Capital.

According to the government, the policy is also aimed at ending the decades-old “inspector raj”.

“As per the police, microbreweries will now be allowed to function at hotels and restaurants on seeking of licence.

“The allowing of microbreweries will make available to the citizens of Delhi, fresh beer in different flavors, as is available in other places like Gurgaon, Bengaluru etc,” a senior government official said.

The official also said that the new policy will provide an opportunity for those engaged in lawful business to carry out their professional activities.

“Under new excise policy, it has been decided to do away with the present renewal system of excise licences for hotels, clubs and restaurants, and merely on payment of prescribed annual fee, the licences will be allowed to continue functioning,” official said.

The excise duty will collected from the wholesale licencee at import level itself, which means that excise duty on liquor will be received much before it enters the territorial jurisdiction of Delhi.

This decision will prevent the pilferage of excise duty to a great extent and allow only well-established and serious stakeholders to participate in supply of liquor, the official added.

Utensils and wooden or timber furniture will now cost cheaper in the national Capital with the Delhi government implementing more than seven per cent reduction in the Value Added Tax (VAT) imposed on such items.

The tax reduction, which came into force on Saturday, is for items falling under three categories--utensils of cutlery items made of metal (including pressure cookers/pans) except those made of precious metals, wax of all kinds not covered by any other entry of any schedule of the Delhi VAT Act, 2004 and wood and timber.

According to the government, it has been decided to slash the VAT from existing 12.5 per cent to 5 per cent on such items in keeping with the amendments approved recently by the Delhi Assembly to the Delhi Value Added Tax Act 2004.

“Delhi government is of the view that the existing ambiguity in the tax structure for no valid reason needs to be rectified.

“Rationalisation of VAT and other taxes is the need of the hour and Delhi government will continue with its pro-people reforms,” a senior government official said.

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