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Chandigarh releases excise policy for the year, increases levies on IMFL by 6 percent

In order to boost the hospitality industry and tourism in Chandigarh, there is no increase in the licence fee of hotels, bars, and restaurants. The admin also allowed the facility of mini bar is allowed in 3-stars and 4- star hotels in addition to 5 Stars or above category of hotels.

Written by Hina Rohtaki | Chandigarh |
Updated: March 4, 2021 9:53:10 am
IMFL excise duty increaseIn order to boost the hospitality industry and tourism in Chandigarh, there is no increase in the licence fee of hotels, bars, and restaurants (Representational)

The Chandigarh Administration increased the excise levies on Indian Made Foreign Liquor (IMFL) by approximately 6 per cent in the new UT Excise policy for the year 2021-22, released on Wednesday.

The new policy was approved by UT Administrator V P Singh Badnore after a detailed presentation by the Adviser to the Administrator, Secretary (E&T), ETC and other senior officers of the Excise Department.

“The new Excise Policy aims at balancing the aspirations of the consumers, manufacturers, wholesalers/ retailers and the government,” said a statement issued by the administration. UT said that the Excise Policy for the year 2021-22 will help to earn revenue approximately Rs 700 crore.

The allotment of licensing units will continue to be made through complete e-tendering system for more transparency and complete online system for issuance of permit/passes to facilitate Trade and Industry.

The number of liquor vends have been increased from 94 to 96. To curb the menace of cartelisation and monopolistic practices, a single entity of firms/ companies/ individuals will be entitled to allotment upto a maximum of ten vends only.

In order to boost the hospitality industry and tourism in Chandigarh, there is no increase in the licence fee of hotels, bars, and restaurants. The UT Administration also allowed the facility of mini bar is allowed in 3-stars and 4- star hotels in addition to 5 Stars or above category of hotels.

PROMOTING LOW ALCOHOLIC CONTENTS
In order to promote the low alcoholic contents, a new category of beer, super mild beer, containing alcoholic content upto 3.5 per cent v/v has been introduced.

The Administration also said that the facility of kegging beer in kegs of 50 litre capacity (manufactured in microbreweries of Chandigarh) is also allowed to microbrewery licensee and licensee can sell draught beer against excise permits to bars, restaurants, and club licensees by following proper standard safety measures. “The licensee shall not pack beer in bottles, cans or pouches for sale,” it was said.

ALCOMETER FACILITY MANDATORY
The UT Administration said that Alcometer facility has been made mandatory for Taverns (Ahatas).

To promote low alcoholic contents beverages like beer and wine, and particularly to boost Indian wine industry, the license fee and Excise Duty has not been increased. The excise duty on country liquor has also not been increased.

BASIC QUOTA INCREASED
The basic quota of IMFL has been increased from 100 lacs PL to 110 lacs PL, the basic quota of country liquor is increased from 8 lacs PL to 12 lacs PL, and the quota of Foreign Liquor (Bio Brand Whisky) has been increased from 3.30 lacs PL to 3.50 lacs PL.

The quota of country liquor and IFL shops has been rationalised keeping in view the differential demands in city and village shops.

In order to promote the Swach Bharat Abhiyan, the retail licensees will have to maintain cleanliness and hygiene in and around the shop, failing which penalty will be imposed.

Meanwhile, the Cow Cess will continue.

During this Excise Policy Year 2021-22, no new bottling plant licence will be granted. Officials said that for liquor consumers, especially IMFL, the liquor will cost them upto 10 per cent more. For example the cost of bottle worth Rs 600, will now be increased by approximately Rs 60.

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