Licence fee up, liquor sale at Mohali, Amritsar airport outlets to fetch more revenue

Ruchika M Khanna

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Chandigarh, May 12

The Punjab Excise and Taxation Department will get a big share from the business of liquor sale from two domestic airports at Mohali and Amritsar. The licence fee for running liquor shops (duty paid) has been increased sharply from Rs 10 lakh to Rs 6 crore in Mohali and to Rs 4 crore in Amritsar.

Having unearthed a business model that allowed middlemen and the licensees to make a huge profit through liquor sale, the department has decided on enhancing the licence fee. According to information, certain persons would buy foreign liquor from these shops at cheaper rates before taking a domestic flight to either states under prohibition or states where excise duties on these brands were very high.

“For example, a bottle of a popular foreign liquor is available at the Chandigarh Airport for Rs 2,200, but it is available in Mumbai for Rs 6,000. Another high-end foreign liquor is available here at Rs 4,300, but the same brand is available at Rs 9,500 in Chennai. This is because of the huge difference in excise duties. A passenger is allowed to carry four bottles of liquor, bought from the shop at the domestic airport while flying out. The department found that some people were flying frequently to these destinations, after buying liquor and returning the same day, allegedly after handing over cheaper liquor from here and selling it at a premium in other states,” said a senior official in Punjab Excise Department, adding that crores were being earned this way by making a small expenditure on buying of return air tickets.

“The sale of liquor is quite good, based on which we have decided to increase the licence fee,” state Excise Commissioner Varun Roojam said, adding that all premium liquor brands, some of which are not available outside airports, were sold at these airport liquor shops.

Initially, the companies operating these shops at the airports will be offered to continue to run the shops after paying the enhanced licence fee. In case of refusal, the two shops will be auctioned, with the new enhanced licence fee.

Sharp rise

The licence fee for running liquor shops (duty paid) has been increased sharply from Rs 10 lakh to Rs 6 crore in Mohali and to Rs 4 crore in Amritsar

The reason

Having unearthed a model that allowed middlemen and the licensees to make a huge profit through liquor sale, the state has decided on enhancing the fee