New excise policy: Now, restaurants and hotels in Chandigarh can stay open till 3am

Meanwhile, welcoming the decision, club owners said that the move will boost tourism and night life in the city.

MPS Chawla, owner of Hotel Altius, said, “It is indeed a positive step as because of the restricted timings in Chandigarh, most of the clientele would go to Mohali. However, UT needs to clear this stance whether they will also give us the sound permission because without sound, there is no use of serving liquor alone.”

E-vehicle cess introduced, excise duty increased

The Chandigarh administration also increased the Excise duty by 5.5% in the 2022-23 excise policy. In the previous policy of 2021-22, there was an increase of 6% in the excise duties on Indian made foreign liquor.
In the new policy announced on Friday, the administration also said that the Minimum Retail Sale Price has also been increased in the range of 5% to 10% considering input costs and taxes.

UT Administrator Banwarilal Purohit, after a detailed presentation by the Adviser to the Administrator, Finance Secretary-cum-Secretary, Deputy Commissioner-cum-Excise & Taxation Commissioner and other Senior Officers of the Excise Department approved new Excise Policy for the year 2022-23.

It was stated that the new Excise Policy aims at balancing the aspirations of the consumers, manufacturers, wholesalers/retailers and the Government.
In the policy, it was also stated that 65 degree proof of Country Liquor has been introduced apart from the existing 50 degree proof and 60 degree proof. This will increase choice for the consumers and make better quality of Country Liquor available.

To curb spurious liquor, pilfer proof seals have also been made mandatory in Country Liquor bottles. Also, the policy stated that only 50% of the basic quota of Country Liquor will be distributed equally amongst the Bottling Plants and 50% of the basic quota will be kept open. Further, additional quota will also be kept open. This will increase choice to the Retail vends to obtain supplies as per their choice of bottling plant and brand.

Overall basic quota has been reasonably increased by 13.4% as per consultation with stakeholders. In the policy, this time Imported RTD (Ready to Drink) has been allowed for sale in U.T. Chandigarh. According to the policy, to ensure better transparency, the allotment of Retail Vends of Liquor will be made through e-tendering system.

Meanwhile, online facility for issuance of permit/passes and applying various Excise Licenses has been introduced.

Now, residents seeking liquor license for marriage functions won’t have to frequent the offices of the Excise and Taxation department. At present, residents have
to frequent the offices of Excise officers to seek permit that is liquor license for the weddings as the system is manual, currently. This would also encourage corrupt practices to get work done quickly. However, with the introduction of online facility, it won’t just end corrupt practices but also make the work easier and would facilitate an applicant.

In order to promote low alcoholic drinks, the Chandigarh administration in its policy stated that the license fee and duties have not been increased on Beer, Wine, RTD (Ready to Drink) etc.

Also, in the etendering of the liquor vends, to ensure that there is better participation, the Chandigarh administration announced that the EMD (Earnest Money Deposit) has been reduced for better participation in the bids.

Track and trace system

UT also introduced a track and trace system in order to curb illegal sale of liquor. It was also stated that Covid rebate (i.e. Pro-rata reversal of license fees) as given in the last year will continue to all retail vends, bars, restaurants, hotels, clubs etc.