The Delhi government excise department revenue touched Rs 7,475.32 crores in 2023-24 which is about 10 percent more than 6,830.04 crores earned as compared to the previous year. The department has generated the Value added tax (VAT) to the tune of 2,258.02 crores in 2023-2024, a whopping 76 percent more as against 1,282 crores in 2022-2023.

The revenue is the highest that has been earned by the department in the last five years, making the promises of increased revenue through the new excise policy fall flat.

Contrary to the tall claims of the Aam Aadmi Party (AAP) ruled Delhi government about the now scrapped liquor policy of increasing revenue for the government, between the period of 2022-2023 VAT collected on liquor in 2023-2024 saw a staggering increase of around 1000 crores in comparison to the previous year when the new policy was in place. The liquor policy came into force in Delhi in November 2021. With its effect, the Delhi government exited the liquor trade entirely, shutting all government-run vends, and the sale of liquor was handed over exclusively to private players.

The reason stated to do so was to eliminate the liquor mafia, increase revenue for the government, and enhance the consumer experience. However, with the new policy in place in Delhi in the year 2021 to 2022, the revenue through VAT saw a decline of more than 400 crores in comparison with the previous year. In 2021 to 2022, revenue through VAT stood at 1275.03 crores which is significantly less than the previous year of 2020-2021 with 1,702.8 crores.

Following Chief Secretary Naresh Kumar’s allegations of gross violations in the policy, the former Deputy CM Manish Sisodia, who also held the excise portfolio in the Delhi government,  in July 2022 withdrew the new liquor policy and reverted to the older policy which permits government-owned shops to sell liquor.

Currently, the city has more than 684 liquor vends run by government organisations — Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), Delhi Tourism and Transportation Development Corporation (DTTDC), Delhi State Civil Supplies Corporation (DSCSC) and Delhi Consumer’s Cooperative Wholesale Store (DCCWS)