Special Excise duty on liquor extended in Puducherry till January 31

PUDUCHERRY: Liquor prices in Puducherry will continue to remain high as the excise department on Monday extended the Special Excise Duty(SED) on liquor sale till January 31, 2021.

Although the COVID-19 cases in the Union Territory have come down, the government wants the continuation of the SED till the end of the festive season. 

In a notification issued on November 30, Deputy Commissioner (Excise) Shashvat Saurah, stated that by the order of  Lt Governor, the validity period of the SED notification dated August 23 to January 31, 2021.

Earlier, the Puducherry administration had proposed to reduce the SED imposed on liquor from December 1 and sent the file in this regard to Lt Governor Kiran Bedi for her approval.

It may be noted that following COVID-19 lockdown, liquor, arrack and toddy shops in the UT were shut till the end of March this year. After the central government announced relaxation in the lockdown, Bedi gave permission for the opening of liquor shops after imposing SED  on liquor deter the influx of people from Tamilnadu.

Accordingly, 25 to more than 100 per cent SED was imposed on IMFL and 20 per cent on arrack. Around 920 brands of liquor are being sold in Puducherry of which 154 brands are being sold both in Puducherry and Tamil Nadu.

Price of these 154 brands was brought at par with that in Tamilnadu which enhanced the prices to double and triple resulting in the slumping of liquor sale in Puducherry. Initially, this Special Excise duty was imposed from May last to August and subsequently extended till November 30.

Explaining the reasons for continuance of SED on liquor for another two months, Bedi said that the COVID-19 situation in Puducherry is just stabilising and there are a series of festivals, namely Christmas, New Year and Pongal coming up.

Further, the COVID-19 status of the UT, vis-a-vis that of neighbouring states of Tamil Nadu, Kerala and Andhra Pradesh needs to be studied by ICMR and their views be taken before tinkering with the existing arrangements, she said.