CAG report on delhi liquor policy presented in the assembly!
The latest report of the Comptroller and Auditor General (CAG) has exposed serious flaws in the implementation of Delhi's excise policy and rules related to liquor supply. The report states that there was a lack of transparency in the policies of the Excise Department and their implementation, due to which the government suffered a loss of about ₹ 2,026.91 crores.
About 14% of the total tax revenue of the delhi government comes from the Excise Department. This department controls and regulates the trade of liquor and narcotics, as well as is responsible for ensuring the quality of liquor. After the implementation of GST from 1 July 2017, alcohol for human consumption was the only product on which excise duty remained applicable. Therefore, the main revenue of the Excise Department comes from the sale of liquor.
How did the loss happen?
The CAG report states that many irregularities and careless decisions were taken in the liquor policy, which caused huge losses to the delhi government
• Loss of Rs 941.53 crore – retail liquor shops did not open at many places
• Loss of Rs 890 crore – the government failed to re-auction the surrendered licenses
• Exemption of Rs 144 crore – given to liquor traders on the pretext of COVID-19
• Loss of Rs 27 crore – proper security deposit was not taken from liquor traders
Liquor reaches the customer through these routes
Many parties are involved in the liquor supply system. Liquor finally reaches the consumers through manufacturers, warehouses located in delhi, government and private liquor shops, hotels, clubs and restaurants. The Excise Department collects revenue from various items, such as excise duty, license fee, permit fee, import/export duty etc.
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