Excise revenues set to emerge new flashpoint

Two days after recommending a Central Bureau of Investigation (CBI) probe into the Delhi government’s excise policy, the lieutenant governor’s office on Sunday accused the AAP dispensation of allegedly misrepresenting excise revenues in a move that is expected to further escalate the ongoing tussle between Raj Niwas and the state government.

According to an official in the LG office, the Delhi government’s claim that excise revenue increased by ₹1,484 crore in the first quarter of 2022-23 owing to the implementation of the revised excise policy was wrong.

“Of the ₹1,484 crore being touted as excise revenue, ₹980 crore are refundable security deposits of the vendor licensees. In fact, in the last five financial years, 2017-18 to 2021-22, the revenue earned by the Delhi government through liquor sale has come down by a staggering ₹567.98 crore,” said the official, who also shared a chart of excise revenue over the years.

No reaction was immediately available from the AAP government. But on Friday, when the LG office recommended a CBI

Pprobe, Delhi chief minister Arvind Kejriwal said, “There are three reasons why they (BJP) are after the AAP: First, because we are honest. Second, because ever since AAP won in Punjab, they want to stall our expanding footprint across the country. Third, they want to stall the good work being done by us (AAP) in Delhi.”

The LG office has contended that in the excise policy 2021-22, the Delhi government has tweaked several procedures to benefit private liquor barons and individuals, and a probe must look into possible kickbacks. The AAP has said that the charges are fake and termed these as a ploy to arrest deputy chief minister Manish Sisodia, who also holds the excise portfolio.

The official further said that despite an increase in the sale of whisky by about 59.5%, wine by about 87% and beer by about 5.5% in the first quarter of 2022-23, there has been no commensurate increase in revenue during the period.

A senior excise department official did not respond when asked to comment on the causes of the alleged decline in revenue despite higher sales volumes.

The official in the LG office also contradicted purported claims by the Delhi government that it earned nearly ₹400 crore in GST on sale of liquor in the first quarter of 2022-23. “GST is a constitutional provision, and that ‘tax’ cannot be counted under the revenue head,” the official said.

AAP MLA Atishi said on Saturday that till 2019-20 when the excise policy framed by past governments was in operation, excise revenue was recorded at ₹4,109 crore. “The new excise policy was brought in 2020-21, and that too in December 2020, and yet, there was an increase of ₹1,300 crore in the revenue within four months of the new policy’s implementation. The BJP should learn math before raising such allegations,” she said.

In the last five financial years, the revenue earned through liquor sale has come down by a staggering ₹567.98 crore. OFFICIAL IN LG OFFICE