Cabinet okays new excise policy, aims to earn Rs 10,145 crore annual revenue

Tribune News Service

Ruchika M Khanna

Chandigarh, March 9

The Council of Ministers headed by Chief Minister Bhagwant Mann today gave its nod to the Excise Policy for 2024-25.

With this, prices of beer and Indian Made Foreign Liquor (IMFL) in the state will go up by around 10 per cent. There could be a negligible hike in rates of country-made liquor, also called Punjab Medium Liquor (PML). The prices are set to increase marginally from April 1 onwards, once the Excise Policy for 2024-25 comes into force.

Sources said prices of beer would go up by Rs 20-25 per bottle, after the government removed a cap on maximum retail price (MRP). The cap on MRP, imposed in the 2023-24 Excise Policy, has been removed after liquor retailers pressed for the same, citing huge losses.

Excise and Taxation Minister Harpal Cheema said the the Excise Policy for 2024-25 has in-built mechanism to take action against any liquor contractor overcharging for beer. The prices of country-made liquor are likely to increase by Rs 4-5 per bottle and those of the IMFL are expected to increase by Rs 50 per bottle, according to the liquor traders.

Officials in the Excise Department said they had reduced the profit margins for L1 contractors and excise fee realisation from L1 contractors was expected to cross Rs 138 crore realised during 2023-24.

In the policy, the quota for the PML has been increased by three per cent, with 8.286 crore proof litres of country-made liquor expected to be sold in 2024-25. The IMFL and beer will have open quota. This system of open quota has helped contractors in all districts bordering Chandigarh, Haryana, Rajasthan and Jammu and Kashmir to make profit as the IMFL was reportedly being smuggled out to these states, where prices are higher than Punjab.

The size of the licensing unit (called group) has been reduced. As a result, instead of 172, there would be 232 licensing units in 2024-25. Another major change in the policy for coming fiscal is the switch over from the present system of renewing liquor licences of existing retailers, to holding draw of lots for allotment of liquor vends. This will ensure that many new players can enter the market.

The policy has also introduced a new category of the PML, having 40 degree alcohol. This lower potency of alcohol in country-made liquor is expected to sell well in areas surrounding Sutlej, where lot of hooch is prepared and consumed. It could replace hooch, said a senior officer.

The Excise Policy, for the first time, also paves the way for controlling counterfeit imported liquor and the IMFL. Marriage palaces / banquets will be asked to set up dumpyards, where all empty liquor bottles will be stored. Once a month, in the present of Excise officials, these bottles will be smashed. This will ensure that the empty bottles do not reach those making counterfeit liquor.

Financial Commissioner Excise Vikas Pratap Singh said the state would earn Rs 10,145 crore in excise revenue in the coming fiscal, which is the highest ever.

Moreover, it has been made mandatory for all bars and restaurants to install alcometers.

Beer to cost 10% more

• Prices of beer and the IMFL are set to increase by around 10 per cent
• Open quota for sale of beer and the IMFL
• Quota for sale of the PML hiked by three per cent
• Number of groups increased from 172- 232
• Auction of liquor vends re-introduced
• Checks in place to stop counterfeiting of imported liquor

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