Liquor gets costlier in Punjab. Grappling with a huge financial crunch, the State Government on Monday decided to impose Covid cess, from June 1, on all categories of liquor, including imported foreign liquor and imported beer, expecting to mop up additional revenue of Rs 145 crore through the imposition of additional excise duty. The Government has raised additional excise duty and additional assessed fee on liquor in the range of Rs 2 to Rs 50 depending upon the type of liquor.
With the new Covid cess, the Punjab Made Liquor (PML) will cost Rs 5 per quart or Rs 3 per pint more; the Indian made Foreign Liquor (IMFL) to cost Rs 10 per quart more (and a proportionate increase in larger packaging) and Rs 6 per pint.
As a result of the increased excise duty, the beer prices have been increased by Rs 5 for every 650 ml and wine by Rs 10 for every 650 ml, while the ready-to-drink alcohol prices have also attracted an additional excise duty of Rs 5 per bottle. The imported foreign liquor will become dearer by Rs 50 per 750 ml (Rs 30 hike in case of other sizes) and imported beer would cost Rs 7 per 650 ml more.
The decision was taken by the Chief Minister Capt Amarinder Singh, who also holds the portfolio of the Excise Department, in the wake of Rs 26,000 crore revenue shortfall amidst the coronavirus pandemic and extended lockdown.
Notably, Punjab is one of the highest per capita consumers of liquor in India. The state has already incurred loss of Rs 500 crore excise duty in April. The liquor business in Punjab generates approximately Rs 6000 crore revenue.
Giving a go-ahead to the imposition of Covid cess on liquor with effect from June 1, the Chief Minister said: “The State is facing a revenue shortfall of Rs 26,000 crore, which is 30 percent of the total budget revenue estimates, for 2020-21, necessitating some tough measures to generate additional revenue.”
The Chief Minister’s decision came after he accepted the recommendation of the Group of Ministers, which was constituted on May 12 to examine the matter, to levy additional excise Duty and additional assessed fee on liquor during the current financial year.
The proceeds of the additional levy shall be utilized entirely for Covid related expenditure, said the Chief Minister, directing the Department of Excise and Taxation to charge the cess in the current year, at the time of issuance of permits for transportation of liquor from L-1/L-13 (wholesale licenses).
Earlier, Capt Amarinder had asked the Group of Ministers (GoM), comprising the Finance Minister, the Education Minister, the Housing and Urban Development Minister and the Forests and Wildlife Minister, to examine the proposal regarding levy of Special Cess or Covid Cess on the sale of liquor, to partially recoup some of the revenue losses amid this unprecedented crisis.