Delhi govt’s excise revenue surges 12%

Update: 2025-10-04 19:17 GMT

New Delhi: With rise in liquor sales, the Delhi government has registered over 12 per cent growth in excise revenue collection in the first half of the current financial year as compared to the same period last year, officials said on Saturday.

As per official figures, the excise revenue including value added tax (VAT) was Rs 3,731.79 crore during April-September 2024-25. It grew to Rs 4,192.86 crore in the first half of the current financial year. The excise revenue of the first half of 2025-26 is likely to rise further with updates as VAT figures were available up to September 16 only, said an excise department official.

“The rise in sale has led to crossing the half mark of excise revenue target of Rs 6,000 crore in 2025-26. With festival season kicking in, peak in sales around Diwali and New Year will hopefully help crossing the annual target,” the official added.

According to data, the cumulative monthly excise receipts (excluding VAT) in April-September 2024-25 were Rs 279.81 crore. It rose to 517.26 crore, up 84.86 per cent in the current year.

The revenue excluding VAT in April-September 2024-25 was Rs 2,598.04. In the current year, it rose by over 17 per cent to Rs 3,043.39 crore.

The department has issued instructions to the government corporation run vends to ensure timely orders and keeping the stock ready for the festival season, officials said. The city has over 700 retail liquor outlets that are run by four corporations of the Delhi government. The excise revenue target was set at Rs 7,000 crore in the budget 2025-26 but was later reset to Rs 6,000 crore in view of sales related estimates, they added. The Delhi government has formed a high-level committee headed by PWD minister Parvesh Sahib Singh Verma, which is framing a new excise policy. 

Excise panel discusses liquor MRPs

The issues of unchanged excise tax rates and maximum retail prices (MRP) of liquor in Delhi were discussed during a meeting of the PWD minister Parvesh Verma-led committee, sources said. The committee is tasked with preparing the draft of a new excise policy. The meeting was held here on Friday.

Delhi loses revenue to NCR cities, including Ghaziabad and Noida in Uttar Pradesh, and Faridabad and Gurugram in Haryana, due to lower excise tax rate and MRPs, sources said on Friday. “The excise tax rate in Delhi has not been revised since 2014, and the MRP was last updated three years ago. A revision in these two will help to tap the full potential of the retail liquor trade in Delhi and generate more revenue for the government,” an official source said. CM Rekha Gupta earlier said that her government was working to form a new “transparent, socially responsible” excise policy.

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