Aimed at curbing the smuggling of liquor and increasing revenue, the Aam Aadmi Party (AAP) led Punjab Government on Wednesday approved its first excise policy — bringing the liquor prices at par with neighbouring Haryana and Chandigarh.
Expected to generate revenue of Rs 9647.85 crore — 40 percent more revenue than the previous fiscal, the policy would bring down the rates of Indian-Made Foreign Liquor (IMFL) and Beer, while increasing its quota.
In addition, the excise mobile wings are also proposed to be strengthened to check pilferage from the distilleries.
The approval of the excise policy came during the State Cabinet meeting, led by Chief Minister Bhagwant Mann.
“The policy strives to keep a stringent check over smuggling of liquor from the neighbouring state through extensive enforcement and by incorporating new technological measures. The excise policy aims to collect Rs 9,647.85 crore in the year 2022-23. This policy shall be applicable for a period of nine months, that is July 1, 2022, to March 31, 2023,” said the spokesperson of the Chief Minister’s Office.
The Cabinet also gave a nod for allotting two special battalions of Police to the Excise Department, in addition to the already existing force, for keeping an effective vigil over the excise duty pilferage. This will also help in keeping a better check over the supply of illicit liquor into Punjab from the neighbouring states.
The new excise policy aims to break the nexus of the mafia involved in the liquor trade. Accordingly, the manufacturer, wholesaler, and the retailer shall be at an arm’s length distance from each other. They shall be completely isolated from each other with no common stakeholder between the above entities.
New Excise policy also stipulates to tap the actual potential of the liquor trade by allotting 177 groups through a free, fair and transparent manner of e- tendering. The general size of the group shall be around 30 crore and there shall be 6378 vends in the state of Punjab.
Excise Duty on all kinds of liquor, except PML, shall be charged at the rate of one percent of the wholesale price. On the same pattern, the assessed fee of IFL shall also be charged at the rate of one percent of the wholesale price. The prices of liquor shall now be almost at par with the neighboring States.
To encourage capital investment and to increase the employment capability in the State, provisions for new Distillery license and Brewery license have been made in the policy.
Further, a new license for the production of malt spirit has been introduced in the State. This has been done to encourage crop diversification and to provide better remuneration to the farmers.
