GS paper 3
Syllabus: Government Policies and Interventions
Source: The Hindu, The New Indian Express
Directions: Just know the issue. No need to take notes.
Context: Recent controversy around, now scrapped, Delhi Excise Policy
Understanding the issue: Delhi government introduced a new “New Delhi Excise Policy 2021-22” last year, in order to ensure the complete withdrawal of the government from the liquor business and handing over licences to the private sector.
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- Until the policy was introduced, the liquor business was a state-controlled entity with no private players.
Initially, it did help the government increase revenue by 27 per cent to Rs 8,900 crores and removal of the dominance of the liquor mafia.
However, issue with the Policy:
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- Location of vends near schools, religious places of new shops.
- Violations related to non-conforming areas where certain businesses such as liquor retail are not allowed
- Issues related to discounts and schemes such as 1+1
- Surrendering of license: Only 468 of the around 850 liquor vends could actually open
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The controversy around Mr Sisodia: He holds the excise portfolio, and is under the lens for allegedly providing “undue financial favours” to liquor licensees.
Mains Link:
Q. The New Delhi Excise Policy 2021-22, sought to ensure optimum revenue for the State government. Critically analyze.
Prelims link:
What is Excise?
An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good.
