The Delhi government is likely to remove the 70% corona tax imposed on sale of alcohol and a formal order to this effect is likely in the next few days, sources said.
According to CNBC-TV18, the decision has been taken due to increasing tax pilferages, added the sources.
After the cess was imposed, liquor sales dropped "drastically" in the national capital in May, prompting the makers to urge the government to reduce the 70% special cess imposed on alcoholic beverages.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) had earlier requested the Delhi government to immediately bring the cess to a "realistic and sustainable" level pointing out sales data of the capital city for the month of May.
CIABC is the apex body of the Indian alcoholic beverage industry and its members include most major Indian companies who manufacture and market their product range in India and abroad. Last month, several states imposed additional tax on liquor, after sales resumed in the third phase of the lockdown.
States like Andhra Pradesh, Delhi and West Bengal imposed 75, 70 and 40 per cent additional levy, respectively on liquor.