Shutter up, metre chaloo: Delhi’s mixed reaction to Special Corona Fee on liquor sale

On May 4, 2020, the Delhi government announced a tax of 70% on sale of liquor in the Capital. This decision came in the wake of long queues and the unruly manner in which people thronged liquor shops.

The Delhi government, on Monday, announced a tax of 70% on sale of liquor in the Capital. Dubbed the Special Corona Fee, this tax will be levied on the MRP (maximum retail price) of liquor bottles. The official order read: “The fee would apply at “70% of the maximum retail price of all categories of liquor sold through written licences for consumption off the premises.”

Long queues were seen outside liquor shops in Delhi where people flouted social distancing norms, leading to Police taking charge. (Photo: Arvind Yadav/HTLong qu)

This decision came in the wake of long queues and the unruly manner in which people thronged liquor shops across Delhi. A government authorised wine shop owner in Nehru Place, on condition of anonymity, gives a low-down on the implementation of the tax: “The tax will be imposed on the new stock. The existing stock is being sold at the same rate. Mere paas abhi tak tax lag ke nahi aaya, toh main tax pe doonga bhi nahi (I haven’t received stock at the new prices yet, so I am not selling it at the new price).

Read: ‘Special corona fee’: Delhi govt to charge 70% tax on liquor from today

From a revenue point of view, this move will help the government recover and make money which can be used in handling the coronavirus crisis. While some have lauded the move, others have raised suspicions on its accountability. Rima Ghoshal, an executive producer living in Vasant Kunj, says, “We are still the privileged ones to be able to enjoy a recreational drink or two. But for those who have lost their jobs, paying this extra amount would make them think twice. This will also give boost to the black market as someone might decide to sell it at 50% extra, which is still less than 70%. The other point is, where is this money going? I want accountability for my tax money.”

People crowding outside a liquor shop in Shri Niwaspuri, in New Delhi.

Citing a gap in the demand and supply of luxury items like alcohol, stand-up comedian Arpan Khosla, a resident of Dwarka, says, “It is a desperate decision to open liquor shops. It [the chaos] was bound to happen when you make something available after a long time. Secondly, I also feel that this tax should be used judiciously because the government needs money. But this should not continue for long.”

This could also mean the last ‘cheers’ for some, at least for the time being. Prateek Ailawadi from Janakpuri, says, “I won’t be buying any new liquor as I don’t see a point in spending 70% more on the cost. It will curb the buying habits of many, as already, people aren’t earning much and there have been pay cuts across sectors. I don’t see any benefits are given to middle class families.”

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