Delhi govt lifts 'special corona fee' on liquor from June 10; raises VAT on alcohol to 25%

In a major development, the Delhi Government on Sunday announced its decision to withdraw the 'special corona fee' levied at 70 per cent of the maximum retail price on all categories of liquor, but hiked VAT from 20% to 25%. This will come in effect from June 10, 2020, the government informed.

The state government imposed the 'special corona fee' on alcohol, a day after allowing re-opening of 150 state-run liquor stores in the city from May 4. Soon after, Valecha, a lawyer, contended that the 'special corona fee' was in excess of what has been authorised by law, alleging that it was being collected 'arbitrarily.' 

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On Friday, May 29 the Delhi High Court had asked the Delhi government to file a detailed affidavit on a batch of pleas challenging the decision to levy 70% 'special corona fees' on the MRP of liquor of all brands in the national capital.

Earlier the Delhi government had filed its response to the petitions, saying that trade or consumption of liquor is not a fundamental right of a citizen and the state has the authority to regulate its sale and levying 70% 'special corona fees' on MRP of all alcohol brands is a price for grant of such privilege to public.

A bench of Chief Justice D N Patel and Justice Sangita Dhingra Seghal, conducting the hearing through video conferencing, heard part arguments and asked the government to file another detailed affidavit and listed the matter for further hearing on June 19.

READ | HC asks Delhi govt to file detailed reply on pleas challenging levy of 70% 'special corona fees'

COVID-19 cases in Delhi

Delhi has so far reported 27,654 cases of COVID-19 according to the data released by the Union Health Ministry. Out of these 761 patients have succumbed to the illness while 10,664 people have recovered. Over the past few days, the rate of growth of new cases has been steep, which has raised concerns on the handling of the situation by the city-state's health infrastructure. 

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(With inputs from ANI)