Ahead of excise policy, contractors seek VAT cut

While the Punjab government has already issued its excise policy for the next financial year, the Chandigarh Administration is yet to announce its much-awaited policy. Officials indicate that the policy is likely to be issued early next week.

The delay has prompted the Chandigarh Wine Contractors Association (CWCA) to urge the administration to release the policy at the earliest.

In a representation to the UT Administrator, the contractors highlighted concerns over taxation differences between Punjab and Chandigarh. They pointed out that Punjab imposes only 1% excise duty and value-added tax (VAT), making liquor prices more competitive.

They have demanded a reduction in VAT and excise duty equivalent to Punjab and open quota for liquor to bring liquor prices on par with Punjab.

“The UT Administration should consider the demands of the liquor contractors and see present scenarios of the liquor trade in the city. It should announce a policy that is favourable to both the administration and liquor contractors,” said Sachit Jaiswal, Advocate, Excise and Taxation.