New excise policy from July 1 in Chandigarh

Tribune News Service

Chandigarh, June 10

The new excise policy will be implemented in the city from July 1 after three months of the Covid-induced lockdown.

UT Administrator VP Singh Badnore has approved amended excise policy 2020-21 (July 1, 2020 to March 31, 2021). The excise policy 2020-21 for April 1, 2020 to March 31, 2021, could not be implemented and the excise policy for 2019-20 was extended up to June 30, 2020, due to the Covid-19 outbreak.

In the new policy, the allotment of licensing units will be made through complete e-tendering system for more transparency and complete online system for issuance of permit/passes to facilitate trade and industry has also been introduced.

For the remaining nine months, the number of licensing units (CL/IMFL) has been reduced from 95 to 94. To curb the menace of cartelisation and monopolistic practice, a single person/entity will be entitled to allotment up to a maximum of 10 vends only.

The total basic quota to be allotted will comprise 75 Lakh Proof Litre (LPL) of Indian-made foreign liquor (IMFL) and 7.5 LPL of country liquor (CL) and 2.47 LPL of imported foreign liquor (IFL) (bio brands i.e. whisky).

The quota of country liquor has been rationalised keeping in view less demand in city shops and quota of IFL has also been rationalised keeping in view less demand for IFL in village shops.

To promote the Swachh Bharat Abhiyan, the retail licensees will have to maintain cleanliness and hygiene in and around the shop, failing which a penalty of Rs10,000 will be imposed and subsequent non-compliance will attract a fine of Rs20,000.

The cow cess will also be applicable in the policy. The cess will be levied at Rs5 per bottle of 750 ml of country liquor, Rs5 per bottle of 650ml of beer and Rs10 per bottle of 700ml/750 ml of whisky and will be deposited by the wholesale licensees in the dedicated bank account of the Municipal Corporation.

The levy of Covid cess will also be applicable from July 1. It will be levied at 5 per cent on minimum retail sale price of all categories of liquor to be deposited by the wholesale licensees in the dedicated bank account of the Municipal Corporation. The cess will be levied up to December 31, 2020, or as per the instructions issued by the Chandigarh Administration.

To promote the Digital India programme, the arrangement of online deposit of excise levies will start and the payment of all amounts relating to the excise levies will be made through electronic payment platform such as debit cards, credit cards, RTGS, NEFT, etc.

Due to the Covid-19 outbreak, all excise licensees will comply with the guidelines announced by the Ministry of Home Affairs and the State Disaster Management Authority, UT, from time to time to contain the spread of the virus.

Salient features of the new policy

• The allotment of licensing units will be made through e-tendering system
• Online system for issuance of permit to facilitate trade and industry has been introduced
• Number of licensing units (CL/IMFL) has been reduced from 95 to 94.
• To curb the menace of cartelisation, a single entity will be entitled to allotment up to a maximum of 10 vends
• The retail licensees will have to maintain cleanliness in and around the shop, failing which a penalty of Rs10,000 will be imposed and subsequent non-compliance will attract a fine of Rs20,000.
• The cow cess will be levied at Rs5 per bottle of 750 ml of country liquor, Rs5 per bottle of 650 ml of beer and Rs10 per bottle of 700 ml/ 750 ml of whisky.
• Covid cess will be levied at 5 per cent on minimum retail sale price of all categories of liquor. It will be levied up to December 31.

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