Punjab too imposes Covid cess on liquor, bottles dearer by Rs 2 to Rs 50

The cess has been imposed in the form of additional assessed fee (AAF) on on imported foreign liquor and beer and additional excise duty (AED) on other types of liquor. The revenue generated will be used for combating Covid in the state.

3 min readChandigarhJun 1, 2020 11:31 PM IST

Anil Vij, SET probe, liquor scam, Haryana news, indian express news

“Faced with huge revenue losses resulting from the coronavirus pandemic and the prolonged lockdown in the state, Punjab Chief Minister Amarinder Singh gave the go-ahead to the imposition of Covid cess on liquor with effect from June 1,” a government statement said.

Punjab government Monday imposed a Covid cess on liquor, ranging from Rs 2 to Rs 50 per bottle, hoping to generate an additional Rs 145 crore in revenue in the current fiscal.

The cess has been imposed in the form of additional assessed fee (AAF) on on imported foreign liquor and beer and additional excise duty (AED) on other types of liquor. The revenue generated will be used for combating Covid in the state.

Punjab, as per the government statement, is facing a revenue shortfall of Rs 26,000 crore, which is 30 per cent of the total budget revenue estimates for the financial year 2020-21, necessitating some tough measures to generate additional revenue.

A Group of Ministers constituted by the CM, with Manpreet Singh Badal (Finance), Vijay Inder Singla (Education), Sukhbinder Sarkaria (Housing and Urban Development) and Sadhu Singh Dharamsot (Forests) suggested the imposition of Covid cess after holding a few meetings with the liquor contractors in the state. The suggestion was accepted by the CM.

As per the government statement, an AED of Rs 5, Rs 3 and Rs 2 has been levied on every quarter, pint and any other smaller size bottle, respectively of Punjab Medium Liquor (PML), the same is Rs 10, Rs 6 and Rs 4, respectively for every quart, pint and any other smaller size for Indian Made Foreign Liquor (IMFL).

Similarly, every 650 ml bottle/can of beer is set to go dearer by Rs 5, 650 ml of wine will be costlier by Rs 10 and RTD of each bottle of any size by Rs 5.

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The 750 ml bottle of Imported Foreign Liquor (IFL) will be dearer by Rs 50 each, and all other sizes by Rs 30 each. Imported beer is set to go be expensive by Rs 7 per ml (750 ml).

Liquor in Punjab is already more expensive than neighbouring states owing to higher excise duty and license fee. This often leads to smuggling of liquor from other states and the Union Territory Chandigarh where the liquor is cheaper, causing a loss to the state exchequer.

A functionary of Excise and Taxation Department said that the cess was on lines of neighbouring Haryana that had proposed a similar amount. He said Delhi government had levied 70 per cent cess on excise duty. This gave an impression that the liquor had gone expensive by 70 per cent. “All the states have imposed a similar hike in liquor prices. It is not that Delhi has levied a fat tax. Ours is also corresponding,” he said.

The proceeds of the additional levy will be utilized entirely for Covid-related expenditure, the CM said., while directing the Department of Excise and Taxation to charge the cess in the current year, at the time of issuance of permits for transportation of liquor from L-1/L-13 (wholesale licenses).

Kanchan Vasdev

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... Read More

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