Govt turns down Army’s request for tax-free liquor

Samaan Lateef

Tribune News Service

Srinagar, February 12

The state government has turned down the Army’s proposal to exempt it from paying taxes levied on liquor.

The Finance Department said the excise duty and import duty charged on liquor manufactured or imported for the Canteen Stores Department and paramilitary forces in the state was less than what was charged from civilians and there was no justification for reducing the import duty (on liquor) further.

The Northern Command, during the Civil Military Liaison Conference, had moved a proposal before the state government stating that it should be exempted from paying tax on rum imported from other states of the country.

The Finance Department, however, stated that the Army and paramilitary forces in Jammu and Kashmir were already “enjoying sizeable concessions” on excise and import duty.

The State Excise Department on September 1, 2015, had issued a notification to revise the charges levied on Indian made foreign liquor, rum and beer meant for the use of civilians and security forces.

As per the 2015 notification under the J&K Excise Act, 1958, the state government brought down the charges levied on liquor consumed by security forces by around 9 per cent in comparison to the charges levied on civilians.

For civilians, the excise duty levied on per liter of super deluxe Indian made foreign liquor (IMFL) is Rs 220 while as the state government charges only Rs 160 in excise duty for the same volume of liquor brand for security forces.

Similarly, the state government levies import duty of Rs 30 per litre on all brands of the IMFL while as for security forces the import duty is Rs 20.

The state government earns around Rs 2.25 crore per month in excise or import duty on liquor consumed by the security forces, an official told The Tribune.