Delhi: 70% 'Corona Cess' On Liquor Fails To Dampen Spirits Of Buyers

New Delhi: Buyers of liquor in Delhi failed to let a whopping 70% cess on booze dampen their spirits. The Delhi state government imposed a cess of 70% on all categories of liquor after chaotic scenes were witnessed at liquor shops in many parts of the national capital on Monday. However, despite the 70% 'corona fee', long queues were seen outside a number of liquor outlets on Tuesday. In many places, social distancing was enforced in contrast to the chaotic scenes seen on Monday outside liquor stores in the national capital.

The Delhi government is trying to shore up its finances which have dried up in the wake of all activity coming to a halt under the ongoing lockdown.

Delhi Chief Minister Arvind Kejriwal had earlier stated that the government's revenues had dipped sharply from over Rs. 3,000 crore to a tenth—a mere Rs. 300 crore. The excise revenues from liquor sales are being seen as a means of generating revenue and hence the Delhi government had imposed a 70% cess in view of the Coronavirus outbreak and the ongoing lockdown.

Coffers of state governments have run dry as most states earn around 30% of their total revenues through liquor sales. The resumption of liquor sales is likely to bring in some earnings to states. On Monday alone, Uttar Pradesh reportedly earned Rs. 100 crore through excise revenue on liquor sales in the state.