Delhi’s Excise Policy at a Crossroads Amidst Looming Expiry
New Delhi: As the clock ticks towards the end of September, the fate of Delhi’s excise duty system hangs in the balance. The existing policy, implemented on September 1 last year, is on the verge of expiration, and the Delhi government has yet to unveil a replacement. Sources now suggest the possibility of reverting to the old excise duty system, which was temporarily reinstated in July last year.
The Current Conundrum
The backdrop to this uncertainty traces back to July last year when the Delhi government, in a significant move, rolled back its newly introduced excise policy. This decision followed a recommendation for a CBI probe into alleged irregularities in the implementation of the new policy by Lieutenant Governor VK Saxena.
Originally slated to conclude on March 31, 2023, the existing excise policy received a lifeline in the form of a six-month extension, pushing the expiration date to September 30. However, the extension has not translated into seamless operations for holders of excise licenses catering to hotels, clubs, and restaurants (HCRs).
Challenges in HCR License Renewal
Holders of licenses in the HCR category have encountered formidable challenges in procuring the mandatory police verification required for permit renewal. The police authorities have indicated that the verification process must be channeled through a government agency or department, citing limitations in handling a high volume of verifications within a tight timeframe.
Manpreet Singh, Treasurer of the National Restaurant Association, voiced concerns over this issue. However, he also noted that the excise department has provided assurances that the renewal of HCR category licenses will not be hindered by delays in police verification.
Key Points:
- The old excise duty system in Delhi may see revisions as its current iteration nears expiration.
- The existing policy is slated to conclude on September 30.
- The Delhi government has not yet unveiled the specifics of the new policy.
- License holders in the HCR category have faced difficulties in obtaining mandatory police verification for permit renewal.
- An extension of six months was granted to the existing policy, prolonging its validity until September 30.
- The excise department has given assurances of a smooth renewal process for HCR category licenses, notwithstanding potential delays in police verification.
As the calendar inches closer to September’s end, the specter of an altered or extended excise duty system looms over the capital, adding a layer of uncertainty for stakeholders in Delhi’s hospitality and entertainment sectors.
