As Punjab targets Rs 1280o cr revenue from excise, IMFL, IFL to go dearer

Finance Minister Harpal Singh Cheema said that there is a target revenue increase of Rs 1780 crore and till date have clocked a revenue of Rs over Rs 11,200 crore.

Sources in the government said while every IMFL bottle will go more expensive by Rs 10-20, IFL will see an increase of Rs 20 to 30 per bottle depending on brands. While the price of Punjab Medium Liquor (PML) or countrymade liquor and Beer will remain the same, the quota of PML has been increased by 3 per cent at 8.79 crore proof litres. Last year, it was 8.53 crore proof litres. Cheema said to combat the sale of illicit alcohol, the government will introduce 40-degree PML sub-vends specifically in areas identified as high-crime zones under the Excise Act.

“The quota for PML is to be fixed as Punjab has a number of distilleries manufacturing this liquor. Some brands sell at as low as Rs 60 per bottle. If we make the quota for PML unlimited, there will be no check on dumping of this liquor in the market,” said a source in the government.

This year, the government has kept the license fee for beer shops low. Last year, it was decreased from Rs 2 lakh per shop to Rs 25,000 per shop. “This year, there is a marginal increase. It would be Rs 30,000 per shop.”

“The increase in target revenue comes from stricter penalties. The penalty for late fee has been enhanced from Rs 1 lakh to Rs 5 lakh. When we are going in for auto approval of new liquor shops and renewal, why should we tolerate delay in payment of fees,” said the functionary.

To help beer shops, label approval will be offered on an auto mode. “This is our initiative under the ease of doing business. Beer is sensitive vis-a-vis season. Its sales peak during April, May and June. With auto label approval, it will be easier for the shops to sell it in April only. Earlier, it used to take time in label approval, printing and pasting. Now, it will be expedited,” he said.

There are 207 groups in all to be allotted. There is no increase in the number of groups than last year. “We did not have a distillery brewing single malts. Now, we will be making the rules enabling this provsiion,” the source said.

The government has agreed to the long pending demand of distilleries to increase the despatch and operating hours. “Some states allow this till 10 pm, we will also do this. We will have to seek more police assistance for this.”

For the better enforcement, the excise department is in talks with the department of home and has sought access to e-Sakshay app.

Later in the day, Cheema told reporters that during the SAD-BJP regime in 2011-12, excise revenue stood at a modest Rs 2,755 crore. Over the subsequent decade, growth remained slow and it reached only Rs 6,255 crore during the Congress regime in 2021-22. “We have been able to more than double it in four years,” he said.

He said the renewal of current retail licenses at a 6.5 per cent increase over the 2025-26 fees is a part of the policy. In cases where groups are not renewed, the allotment will be handled through a transparent e-tender process.

He said, “Brand price increases of up to 4% under EDP and EBP will now be subject to an auto-approval mechanism, significantly reducing bureaucratic delays.”

Cheema added that law enforcement has been exceptionally active, resulting in 4,406 FIRs and the arrest of 4,324 individuals. Operations included 26,218 raids and the establishment of 24,832 checkpoints, leading to the confiscation of 455 vehicles and 1,76,552 bottles of liquor. Additionally, the Excise Department destroyed 3,823,576 litres of Lahan, seized 82,990 litres of Ethanol and ENA, 66,794 litres of illicit liquor, and dismantled 374 working stills, reaffirming the state’s commitment to public safety and legal integrity.”