Excise Policy 2025-26: Bring duty, VAT on par with Punjab, say liquor contractors

Tribune News Service

Chandigarh, December 26

Liquor contractors have suggested that the UT Excise and Taxation Commissioner should bring excise duty and VAT on a par with Punjab.

The Excise and Taxation Department has invited suggestions from the stakeholders with respect to the Excise Policy 2025-26.

The Chandigarh Wine Contractor Association (CWCA) has proposed several key changes to boost the liquor trade in Chandigarh, which has been impacted by the Punjab Excise Policy.

One of the primary suggestions is to reduce the excise duty and VAT to 1%, making it equivalent to Punjab, to prevent customers from buying cheaper liquor from there.

The Excise Duty and VAT should be equivalent to Punjab, as UT traders have been facing heavy losses. The lending cost of liquor in Punjab is less than that in Chandigarh and this difference makes the liquor of Punjab much cheaper compared to Chandigarh,” said Darshan Singh Kler, president, CWCA. This has resulted in losses to the liquor vends that are situated at Punjab-Chandigarh border, he added.

The association demanded that the quota of IMFL, IFL and country liquor be opened and import duty reduced.

The ex-distillery price (EDP) and ex-brewery price (EBP) should not be increased under any circumstances, as any increase will lead to the prices of liquor skyrocket in Chandigarh, says Kler.

Other suggestions include reducing the EBP for beer, wine and ready-to-drink (RTD) to encourage people to switch to mild alcohol drinks, extending the date to sell carry-forward stock to December 31, instead of June 30 in the new policy of 2025-26.

The CWCA has urged the Excise and Taxation Commissioner to consider these suggestions in the Excise Policy 2025-26 to benefit both the administration and traders in the city.

“Last year, the meeting was boycotted by the liquor contractors but this year, the contractors have high hopes that the administration will consider and include their suggestions in the upcoming Excise Policy 2025-26,” said Sachit Jaiswal, an advocate.