PremiumThe excise policy, aimed at keeping a stringent check on the smuggling of liquor from neighbouring states, will be applicable for a period of nine months from 1 July this year till 31 March 2023
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The Aam Aadmi Party-led Punjab cabinet on Wednesday approved its first excise policy, which is expected to bring down the prices of liquor in the state by at least 30 to 40%.
Following this, the rate of liquor in Punjab will be on par with Union Territory Chandigarh and Haryana.
The excise policy, aimed at keeping a stringent check on the smuggling of liquor from neighbouring states, will be applicable for a period of nine months from 1 July this year till 31 March 2023.
According to a spokesperson from the chief minister's office, the state government is expecting revenue generation worth ₹9,647.85 crore which is 40% more than the revenue mobilised from the liquor business last year.
The new excise policy aims to break the nexus of mafia involved in liquor trade, said the spokesperson.
The manufacturer, wholesaler and the retailer shall be at an arm's length distance from each other. They shall be completely isolated from each other with no common stakeholder between them, said the spokesperson.
Further, the cabinet also approved the allotment of two special battalions of Police in the excise department, in addition to the existing force, for keeping an effective vigil over the excise duty pilferage.
This will help in keeping a better check over the supply of illicit liquor in the state from neighbouring states, said the spokesperson.
What does the new excise policy say?
According to the new excise police, no quota has been fixed for lifting IMFL and beer by the retail licensees. However, the quota for the Punjab Medium Liquor (PML) remained what it was last year, said an official of the excise department.
The new excise policy stipulates to tap the actual potential of liquor trade by allotting 177 groups through a free, fair and transparent manner of e-tendering. Earlier, liquor vends were allotted on the basis of draw of lots.
The general size of the group shall be around ₹30 crore and there shall be 6,378 vends in the state, said the spokesperson.
The excise duty on all kinds of liquor except PML shall be charged at the rate of one per cent of the wholesale price.
On the same pattern, the assessed fee shall also be charged at the rate of one per cent of the wholesale price, said the spokesperson.
To encourage capital investment and to increase the employment capability in the state, a provision for new distillery licence and brewery licence has been made in the policy.
Further, a new licence for the production of malt spirit has been introduced in the state. This has been done to encourage crop diversification and provide better remuneration to the farmers, said the spokesperson.
Opposition's reaction
Meanwhile, BJP leader Manjinder Singh Sirsa accused the AAP government of replicating the Delhi excise model to benefit a few.
“@Aam AadmiParty is abusing Punjab state machinery & replicating Delhi model of excise in Punjab to benefit a selected few," said Sirsa in a tweet.