New Excise Policy to hit Bacchus lovers

Dushyant Singh Pundir

Tribune News Service

Chandigarh, March 3

Tipplers will have to shell out more as the UT Administration has increased the excise duty on the India-made foreign liquor (IMFL). However, the excise duty on beer and wine has not been increased for the financial year 2021-22.

UT Administrator VP Singh Badnore today approved the new Excise Policy for 2021-22, which aims to earn a revenue of nearly Rs700 crore.

Although the increase in the excise duty on the IMFL was 6 per cent, the effective hike would be nearly 10 per 12 per cent, said a liquor contractor. Apart from excise duty, the market prices of liquor would depend on the rates at which the tenders were allotted, he added.

To promote low-alcoholic content, a new category of beer — super mild beer — containing alcoholic content up to 3.5 per cent has been introduced in the policy.

Salient features

• A category of super mild beer has been introduced
• Number of liquor vends has been increased from 94 to 96
• A single entity entitled to allotment up to 10 vends
• No increase in the licence fee of hotels, bars and restaurants in the city
• Facility of mini-bar allowed in three and four-star hotels
• Alcometer facility made mandatory for taverns
• Licence fee, excise duty on beer, wine not increased
• Excise duty on country liquor too remains the same
• No new bottling plant licence will be granted in 2021-22

In the new policy, the allotment of licensing units will continue to be made through e-tendering system for issuance of permit. To curb the menace of cartelisation and monopolistic practices, a single entity of firms, companies and individuals will be entitled to allotment of the maximum 10 vends only.

To boost the hospitality industry and tourism in Chandigarh, there will be no increase in the licence fee of the hotels, bars and restaurants.

Meanwhile, the Administration has allowed the facility of mini bar in 3-star and 4-star hotels in addition to 5-star or above category of hotels.

The licence fee and excise duty on beverages with low alcoholic content such as beer and wine has not been increased. The excise duty on country liquor has also not been increased.

The basic quota of the IMFL has been increased from 100 lakh proof litre (LPL) to 110 LPL while that of country liquor has been increased from 8 LPL to 12 LPL and foreign liquor from 3.30 LPL to 3.50 LPL.

Cow cess has been retained in the new policy. It is being levied at the rate of Rs5 per 750 ml bottle of country liquor, Rs5 per 650ml bottle of beer and Rs10 per 700ml/750 ml bottle of whisky.

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