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Haryana Cabinet approves new excise policy, removes Covid cess

Due to the pandemic, the sale hours of retail outlets of liquor have been re-fixed in rural areas from 8 am to 11 pm from April to October and from 8 am to 10 pm from November to March.

Manohar Lal Khattar, Haryana sector plot holders, Haryana Settlement scheme, Chandigarh news, Haryana news, Indian express newsHaryana Chief Minister Manohar Lal Khattar

THE HARYANA Cabinet, led by Chief Minister Manohar Lal Khattar, on Thursday approved a new excise policy for the year 2021-22 and decided to remove the Covid-19 cess that was imposed for generating additional revenue in view of the pandemic.

Due to the pandemic, the sale hours of retail outlets of liquor have been re-fixed in rural areas from 8 am to 11 pm from April to October and from 8 am to 10 pm from November to March. In case of urban areas, sale hours will be from 8 am to 12 am (midnight) throughout the year.

“Marginal increase has been proposed in the minimum retail sale prices of liquor. Export duty on country liquor, IMFS and beer has been reduced. No change has been made in the fee structure of bar licenses. PET (Plastic) bottles shall not be allowed for bottling of IMFL and Metro Liquor,” the spokesperson said.

“The overall collection from excise in financial year 2020-21 was Rs 6,792 crore against collection of Rs. 6361 crore in financial year 2019-20. Despite complete lockdown till first week of May, 2020 and overall economic slowdown for major part of the year 2020-21, excise revenue during the financial year 2020-21 has witnessed growth of 6.69 percent. Since, the period of allotment of retail vends for 2020-21 will come to an end on May 19, 2021, the growth in excise revenue for policy year 2020-21 is likely to reach 15 per cent,” the government spokesperson said.

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Salient features of the new excise policy (2021-22) are the duration of excise policy for the year 2021-22 would now be from May 20, 2021 to May 19, 2022. The liquor vends shall be allotted for a period of one year (365 days).

“The government has decided to discontinue/abolish Covid cess on sale of liquor in next policy (2021-22). Covid cess was imposed in 2020-21 for generating additional revenue in view of pandemic,” the spokesperson added.

“The existing licensees of zones of CL (L-14A) and IMFL (L-2) vends for 2020-21 are offered an option to get their licenses renewed for the policy year 2021-22 (i.e May 20, 2021 to May 19, 2022). The licenses of zones of CL and IMFL vend shall be renewed at an increase of 10 per cent over and above the ‘Base License Fee/proportionate license fee as the case may be’ for the year 2020-21. For remaining zones that are not renewed, bids shall be invited. In case, sufficient number of applications for renewal of zones of CL (L-14A) and IMFL (L-2) vends from the existing licensees of 2020-21 are not received, the competent authority may invites e-bid/e-tender for all the zones of vends,” the spokesperson added.

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During the policy year 2021-22, the quota of IMFS has been increased from 550 lakh PL to 625 lakh PL.

The enhanced quota of IMFS shall be added proportionately in the basic quota of all the zones of liquor vends. The quota of country liquor has been kept same.

“To encourage blending of ethanol in petrol and proper utilization of agriculture produce, a new license (E-3/E-3A) has been introduced for setting up an ethanol based distillation plant with a nominal fee. In case any vend or vends of any zone are closed or are subsequently closed on account of falling under covid containment zone, its license fee and quota shall be proportionately waived off in proportion of days of closure. For the purpose of computation of proportionate license fee and quota of a closed vend to be waived off, the license fee and quota of a zone shall be equally divided amongst both vends of the zone,” the spokesperson added.

First published on: 23-04-2021 at 11:23 IST
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