How Delhi, UP govt bringing new liquor policy to boost revenue
According to the World Health Organization (WHO), average alcohol consumption in India was 5.7 litres per person and China is 7.2 litres.
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According to the World Health Organization (WHO), average alcohol consumption in India was 5.7 litres per person and China is 7.2 litres. India has had a conflicting history with prohibition. States have been torn between the need for revenues from alcohol and its abuse. As a result, they have been imposing dry days, and some form of control.
For now, revenues are all that states can see in liquor. Nearly 15 per cent of its revenue comes from excise duties. It is next only to GST and sales tax. The Delhi new liquor policy is an attempt to boost revenues. Under the new system, private players are encouraged. Every liquor outlet in the city will provide a walk-in experience to its customers.
Delhi's proposed new liquor policy clears the way for home delivery of liquor. Licences will be given through online bidding. And bars will be open till 3 am unless of course, you have a licence to run your place round the clock! Other reforms include reducing the number of dry days in a year from 21 to three. Draught beer shall be allowed to be taken away in bottles or 'growlers'. As part of the new reforms, the bars in hotels, restaurants and clubs have been allowed to operate till 3 am except those licensees which have been given license to operate round the clock service of liquor.
The government has introduced new license L-38 for banquet halls, party places, farm houses, motels, wedding/party/event venues with permission to serve Indian and foreign liquor in all the parties hosted at their premises on payment of one-time annual fee.
The Uttar Pradesh government has also approved its excise policy 2021-2022 designed to boost revenues. The State would also like to lay a red carpet to national and international business travellers especially, those earlier frequenting China and a new-age, urban workforce.
In a bid to boost alcohol production in the state, the Uttar Pradesh government announced that the excise duty on beer will be slashed from 280 per cent to nearly 200 per cent. Apart from this, the prices of wine, beverages with low alcoholic content and foreign liquor are also expected to fall with the government reducing the Covid cess imposed on liquor vends.
Premium retail vends shall be permitted at airports. Wine tasting facility and sale of drinking accessories shall be allowed at premium retail vends. To promote the production of wine within the state, wine made out of locally produced fruits shall be exempted from excise duty for a period of five years and shall be allowed the retail sale of wine. To promote ease of doing business, brand registration, label approval, bar and micro-brewery licences will have the option to be renewed up to 3 years instead of requiring approvals every year, the new excise policy said.