Pay 15% more for booze in Chandigarh

Tribune News Service

Dushyant Singh Pundir

Chandigarh, March 4

Boozers will have to shell out nearly 15 per cent more as the UT Administration has increased the excise duty by 5.5 per cent on the India-made foreign liquor (IMFL) for the 2022-23 fiscal.

In the new excise policy approved by UT Administrator Banwarilal Purohit for 2022-23, which aims at earning a revenue of nearly Rs800 crore, the Administration has for the first time allowed the sale of imported RTD (ready to drink) and extended the timings for serving liquor up to 3 am in restaurants, bars and hotels on the payment of additional fee and has also levied e-vehicle cess from Rs2 to Rs40 per bottle. To promote low alcoholic drinks, licence fee and excise duties have not been increased on beer, wine and RTD.

A liquor contractor said though the increase in the excise duty on the IMFL was 5.5 per cent, the effective hike would be nearly 10 per cent to 20 per cent. Apart from the excise duty, the market prices of liquor would depend on the rates at which the tenders were allotted, he said.

To give an incentive to buyers of electric vehicles, e-vehicle cess has been introduced in pursuance of the e-vehicle policy of the UT Administration. The cess will be levied per bottle varying from Rs2 to Rs40.

To increase choice for consumers and make better quality of country liquor available, the authorities have introduced 65 degree proof of country liquor apart from the existing 50 degree proof and 60 degree proof. To curb spurious liquor, pilfer-proof seals have been made mandatory in country liquor bottles.

To increase choice for retail vends to obtain supplies as per their choice of bottling plant and brand, only 50 per cent of the basic quota of country liquor will be distributed equally among the bottling plants and 50 per cent of the basic quota will be kept open. Further, additional quota will also be kept open.

In consultation with stakeholders, the Administration has reasonably increased the overall basic quota by 13.4 per cent. For more transparency, the allotment of retail vends of liquor will be made through the e-tendering system.

To facilitate stakeholders, the Administration has introduced the online facility for issuance of permit/passes and applying various excise licences. For better participation, the EMD (earnest money deposit) has been reduced in the bids.

For transparency, mandatory computerised billing will be introduced by October 1, 2022, and penalty of Rs5,000 will be imposed on non-issuance of receipt.

In a relief, Covid rebate (pro-rata reversal of licence fee) as given last year will continue for all retail vends, bars, restaurants, hotels and clubs.

To encourage night life in the city, the facility of two-hour extension in closure timings up to 3 am will be provided to restaurants/bars and hotels on the payment of additional licence fee and round-the-clock service of liquor will be allowed in three-star and four-star hotels on the payment of additional licence fee.

To curb the illegal sale of liquor, a track and trace system will be introduced during this policy year.

Stringent penalty for non-maintenance of the minimum retail sale price by liquor vends has been introduced in the policy and vends will be sealed for three days on the first violation.

For surveillance, CCTV cameras will be introduced in all retail vends by May 1 and a penalty of Rs50,000 will be imposed on the sale of expired liquor by retail vends.

Considering the request of hotels and restaurant associations and to give support to them, their licence fee has been kept the same. Also, to ensure availability of more variety and brands, label/brand registration fee has been kept the same.

The Administration has also increased the minimum retail sale price in the range of 5 per cent to 10 per cent considering input costs and taxes.

Nightlife to grow in UT

The nightlife in Chandigarh, which had shifted to neighbouring Zirakpur and Mohali with the opening of nightclubs and hotels, will be back in the city with the extension in the closure timings of bars and hotels by two hours till 3 am. Welcoming the steps taken by the UT to extend the bar timings and round-the-clock serving of liquor in three and four-star hotels on the payment of additional licence fee, Sanjiv Verma, a restaurant owner, said people used to go to Zirakpur and Mohali after 11 pm, but now the nightlife is going to grow in the city.

e-vehicle cess imposed

To boost the sale of electric vehicles, the UT Administration has introduced e-vehicle cess, which will be levied per bottle varying from Rs2 to Rs40.

Online permit

For the convenience of stakeholders, the online facility for issuance of permit/passes and applying for excise licences has been introduced.

What is ready to drink

Ready to drink (RTD) packaged beverages are those sold in a prepared form and ready for consumption such as breezer, which is available in different flavours. The idea is that the customer will open the cocktail and simply pour and serve. Many alcohol beverage firms are planning to introduce RTD versions of their popular brands after tipplers turned to convenient in-home drinking amid Covid-induced restrictions.

Salient features

• To curb spurious liquor, pilfer-proof seals made mandatory in country liquor bottles
• Imported RTD (ready to drink) has been allowed for sale in the UT
• EMD has been reduced for better participation in the bids
• Mandatory computerised billing to be introduced by October 1 and a penalty of Rs5,000 to be imposed on non-issuance of receipt
• Track and trace system to be introduced to curb illegal sale of liquor
• Penalty for non-maintenance of minimum retail sale price by liquor vends introduced. Vends will be sealed for three days on the first violation.
• CCTV cameras to be introduced in all retail vends by May 1
• Penalty of Rs50,000 will be imposed on the sale of expired liquor by retail vends
• Minimum retail sale price has been reasonably increased in the range of 5 per cent to 10 per cent

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