Delhi New Excise Policy 2026: Liquor Prices May Rise In October, Here’s What Could Change

Delhi’s new excise policy may be notified in October 2026, with proposed changes to excise duty and retail margins. Here’s what the policy could mean for liquor prices and consumers.

The cost of liquor in Delhi may experience yet another increment due to the introduction of the New Excise Policy of Delhi government. Among the new policies that are to be introduced are the new excise duty rates and retail margins, thus affecting the overall price paid by the end user. The notification for this policy is scheduled for October 2021 and will require the consent of Delhi Cabinet and Lt. Governor Taranjit Singh Sandhu.

Draft of New Excise Policy Ready

As per the latest reports, the draft for the new excise policy of Delhi is ready. Once the new Excise Commissioner is appointed by transferring the previous commissioner, the process will move further.

Once all the formalities are fulfilled, the government is planning to notify the policy in October.

Retail Margins And Premium Liquor Stores May Be Affected

One of the main areas where a change may be introduced involves the fixed retail margin that is charged on government-owned liquor stores. There are presently over 700 liquor stores owned and operated by four government corporations in Delhi. The new policy may affect retail margins.

Another aspect that will be addressed in the upcoming policy includes increasing the number of premium liquor stores. It is believed that any changes in the availability of expensive imported liquor will form a part of the policy.

Higher Excise Duty May Result In Increased Prices

Excise duty is also one of the important aspects that is being considered. This particular tax depends on the category and price of liquor and official figures published by the Delhi Excise Department state that a 150% excise duty is applicable to Indian beer and 85% to foreign liquor up to the specified wholesale-price slab.

Vinod Giri, an industry representative, has mentioned that there is a 25% VAT charged alongside the excise duty and that any changes in the latter will result in increased liquor prices.

What Delhi Consumers Need to Know

The extent of increase in the prices will be determined by the finalized policy along with the new structure of the duties and margins. Before the proposal is approved and notified, new liquor prices cannot be fixed.