Delhi Puts 70% Tax on Alcoholic Drinks After Buying Surge

May 5, 2020, 2:31 PM UTC

The Delhi government imposed a 70% “special corona fee” on all all sales of alcoholic drinks.

The measure, rushed through Monday night and effective Tuesday, is designed to reduce the numbers of people buying such drinks after many flocked to liquor stores during the day, ignoring social distancing rules and creating unrest.

  • Liquor stores reopened across the Indian capital yesterday following 40 days of lockdown during which only essential provisions such as food and medicines were available.
  • Delhi Chief Minister Arvind Kejrival warned Monday evening that he would shut down the shops again if people don’t follow the safety protocols.
  • Despite the strict lockdown, Delhi is still classified a Covid-19 hotspot, with 4,898 cases and 64 deaths, according to government data.
  • The government of the southeastern state of Andhra Pradesh also increased the additional retail excise tax for a broad range of alcoholic beverages. The tax ranges from 20 INR ($0.26) for a miniature (60-90ml) liquor bottle, to 6,000 INR ($79) for 50-liter beer containers.

To contact the reporter on this story: Lou Del Bello in Delhi at correspondents@bloomberglaw.com
To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Joe Stanley-Smith at jstanleysmith@bloombergtax.com

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