UT liquor prices will soon be on par with Punjab,Haryana

Excise Policy Duty & licence fees hiked sharply in bid to curb smuggling from UT to neighbouring states

Written by Express News Service | Chandigarh | Published: April 4, 2012 1:12:19 am

Excise Policy Duty & licence fees hiked sharply in bid to curb smuggling from UT to neighbouring states

Liquor is all set to get more expensive in Chandigarh as per the Excise Policy for 2012-13,which was approved by the UT Administration today. The policy would be in effect from May 1,2012,to April 30,2013. Apart from a steep hike in excise duty,there would also be an increase in licence fees. The maximum permissible vends would be 217,the same as last year. There is likely to be an increase of around 30 to 40 per cent in the price of liquor. With the enhancement,the prices would be at par with those in Punjab and Haryana. The policy has been made in order to prevent smuggling of liquor from the city to neighbouring states.

The hike in excise duty has been between 35 to 100 per cent across different types of liquor. The minimum retail sales rate has also been enhanced by 30 to 45 per cent across different brands. The maximum number of retail sale licenses is kept unchanged at 65 and 152 for country liquor and foreign liquor vends respectively. Another factor that would lead to an increase in prices is that the minimum reserve price for retail sale foreign liquor and retail sale country liquor would be fixed by increasing the license fee or the highest bid price of last year by 20 per cent.

A new feature that has been introduced this year is that in case of similarly situated sites,ie sites within one sector or village,the minimum reserve price would be fixed by averaging the licence fee of Excise Year 2011-12 of such licences and then increasing it by 20 per cent. The minimum reserve price will be further rounded off to the next thousand level.

For a minimum reserve price of Rs 1 crore,the reserve price has been fixed at Rs 10 lakh,between Rs 1 crore to Rs 1.5 crore it will be 13 lakh,for Rs 1.5 crore to Rs 2 crore the reserve price would be Rs 16 lakh and for reserve price exceeding Rs 2 crore the reserve price would be Rs 20 lakh. The Excise Duty on Country Liquor would be enhanced from Rs 7 per Proof Litre (PL) to Rs 15 per PL. The minimum retail sales rate of Country Liquor is enhanced by 50 per cent. The licence fee of the wholesale licenses of Country Liquor is enhanced from Rs 2.60 lakh to Rs 3 lakh. The import and export fee has been increased by 10 per cent. The Excise Duty on Indian Made Foreign Liquor (IMFL) has been fixed at Rs 30 per PL for cheap,economy and medium brands. It would be Rs 35 PL for premium and ultra premium brands and Rs 50 PL for semi deluxe,deluxe and super deluxe brands. It will be Rs 60 PL for ultra deluxe brands.

The Excise Duty on Beer has been enhanced from Rs 9 per bottle to Rs. 10 per bottle for light beer and from Rs 15 per bottle to Rs 17 per bottle for strong beer. Additional license fee at the same rates will be applicable on Imported Beer. Meanwhile,the excise duty on wines,champaign,cider,RTD and Liqueurs has been enhanced from Rs 12 per BL to Rs. 15 per BL. Additional license fee on imported wines will be chargeable at the same rates.

The licence fee of wholesale licenses of IMFL,Imported Foreign Liquor,Beer and Wines will be enhanced by 12 to 15 per cent. Permit fee and Import fee on these items would be enhanced by 10 per cent. The Label Registration Fee is enhanced by 10 per cent.

The Minimum retail sale rates of IMFL would be enhanced by 40 to 50 per cent and of Beer by 10 to 13 per cent. The Excise Duty and assessment fee for liquor sold to Defence personnel has not been changed. The assessment fee on IMFL/ IFL sold at retail sale foreign liquor licences is enhanced by 104 per cent. The licence fee of bar licenses issued to restaurants,hotels and clubs has been enhanced by 13 per cent. Assessment fee for sales made at these outlets to be enhanced by around 10 per cent. There is an enhancement of 10 per cent in assessment fee and 13 per cent in the license fee of the licenses to departmental stores.

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