Liquor prices may be hiked

NEW DELHI: Bad news for drinkers. The state finance department has cleared a proposal to hike the prices of most brands of beer, whiskey, vodka and Indian Manufactured Foreign Liquor (IMFL). The official reason: The government needs additional revenues for the current financial year as it has spent a lot of money on the Commonwealth Games.
While a bottle of beer will cost Rs 10 more, a peg of whiskey and vodka will also be dearer.
"The proposal will be put before the chief minister Sheila Dikshit and Lt Governor Tajinder Khanna for their approval. We are expecting additional revenue generation of Rs 150 crore from the hike in price of beer alone. The hike in whisky price can bring us an additional revenue of Rs 100 crore," said finance minister A K Walia.
On whether the government was planning any other fiscal move to improve the state's revenue generation, Walia refused comment.
This is the second time in less than a month that the Delhi government has increased the price of beer, especially at a time when it is in demand due to rising mercury. Most brands of beer like Kingfisher and Haywards have already registered an increase of Rs 5 per can or bottle.
Some shops in Connaught Place have already put up handwritten notices stating that alcohol prices will rise from May 15.
"Some of the liquor shops have started quoting the new prices. The prices of Indian Manufactured Foreign Liquor brands could increase between Rs 10 and Rs 100 per bottle," said Nikhil Mehrotra, an executive working in a marketing firm.
Walia said the government was expecting budgetary support from the Centre for expenses incurred due to the Commonwealth Games. But the Centre allocated Rs 50 crore only. The government is, therefore, exploring other avenues to increase revenue generation.
However, a senior excise department official said despite the proposed hike, beer and liquor prices in Delhi will remain cheaper than other National Capital Region (NCR) cities.