Eyeing more revenue, Punjab plans to renew liquor licenses, raise quota
Vinod Kumar | TNN | Feb 13, 2019, 10:26 IST
Picture used for representational purpose onlyCHANDIGARH: Hoping to fetch extra revenue, the Punjab government is contemplating giving extension to the existing liquor traders operating vends by charging them extension fee in addition to other levies. The government is also planning to increase the annual quota of liquor to be lifted by the vends by 15%.
The department of excise and taxation is in process of taking feedback from the existing liquor retail traders before finalising the excise policy for the year 2019-20. According to sources, the department is trying to gauge the number of traders who are interested in renewing their licence and the amount of extension fee they are willing to pay.
Till last year, there was no provision of extension and the vends were allotted after draw of lots. If things go as per plan, then draw of lots will be held for only those vends for which request for extension is not received. There are around 5,700 retailed liquor shops allotted by the department across the state.
Bhatinda-based liquor trader, Harish Kumar, who has shops in over five districts of the state, said that the government should go ahead with the proposed move as it would be a win-win situation for both the government as well as the traders.
The government would earn more revenue by way of charging extension fee in the range of 10% of the total value of the vend in addition to other levies, while the traders would save time and money required for shifting to other locations, he said. “A large number of traders are in favour of this proposal and have given a positive feedback to the excise department,” Kumar added.
An official of the excise department, on request of anonymity, said that the proposal of extension of license was under consideration and would be put up before the cabinet for final decision. The official said that practice of renewing license of liquor traders was already there in other states.
In addition, the government is planning to increase the annual quota of liquor to be lifted by the licensed vends by 15%. Last year, the government had slashed quota up to 30%. As per norms, the liquor traders have to lift the quota fixed by the government in the excise policy. Increased quota will also help the government mop up more revenue as the traders have to pay duty and assessment charges per case.
Last year, the annual quota of Punjab-made liquor (PML) was brought down from 8.44 crore proof litre to 5.78 crore proof litre, while for Indian made foreign liquor (IMFL) the quota was reduced from 3.71 crore proof litre to 2.48 crores proof litre, and 3.22 crore bulk litre to 2.57 crore bulk litre for beer.
The department of excise and taxation is in process of taking feedback from the existing liquor retail traders before finalising the excise policy for the year 2019-20. According to sources, the department is trying to gauge the number of traders who are interested in renewing their licence and the amount of extension fee they are willing to pay.
Till last year, there was no provision of extension and the vends were allotted after draw of lots. If things go as per plan, then draw of lots will be held for only those vends for which request for extension is not received. There are around 5,700 retailed liquor shops allotted by the department across the state.
Bhatinda-based liquor trader, Harish Kumar, who has shops in over five districts of the state, said that the government should go ahead with the proposed move as it would be a win-win situation for both the government as well as the traders.
The government would earn more revenue by way of charging extension fee in the range of 10% of the total value of the vend in addition to other levies, while the traders would save time and money required for shifting to other locations, he said. “A large number of traders are in favour of this proposal and have given a positive feedback to the excise department,” Kumar added.
An official of the excise department, on request of anonymity, said that the proposal of extension of license was under consideration and would be put up before the cabinet for final decision. The official said that practice of renewing license of liquor traders was already there in other states.
In addition, the government is planning to increase the annual quota of liquor to be lifted by the licensed vends by 15%. Last year, the government had slashed quota up to 30%. As per norms, the liquor traders have to lift the quota fixed by the government in the excise policy. Increased quota will also help the government mop up more revenue as the traders have to pay duty and assessment charges per case.
Last year, the annual quota of Punjab-made liquor (PML) was brought down from 8.44 crore proof litre to 5.78 crore proof litre, while for Indian made foreign liquor (IMFL) the quota was reduced from 3.71 crore proof litre to 2.48 crores proof litre, and 3.22 crore bulk litre to 2.57 crore bulk litre for beer.
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