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This is an archive article published on May 8, 2022

Gurgaon liquor vends welcome policy to operate 24×7, call it ‘game changer’

The excise policy for 2022-23 passed on Friday states that any urban vend, which intends to operate beyond the stipulated time from 8 am to 12 am, can be allowed on payment of an additional licence fee.

The excise department has also been directed to ensure that liquor stores do not advertise on social media or other platforms.The excise department has also been directed to ensure that liquor stores do not advertise on social media or other platforms.

Aimed to boost revenue and counter competition from Delhi, liquor vends in urban areas in Gurgaon will have the flexibility to operate for 24 hours after paying an additional licence fee, as per the Haryana government’s new excise policy.

The excise policy for 2022-23 passed on Friday states that any urban vend, which intends to operate beyond the stipulated time from 8 am to 12 am, can be allowed on payment of an additional licence fee. Officials said for an extension of four hours beyond the stipulated time, 25% of the vend’s annual licence fee will have to be paid, and for an extension of eight hours, a payment of 50% of the same will be required.

Excise officials said the policy had been framed keeping in mind the cut-throat competition in neighbouring states. Anurag Rastogi, ACS, Excise and Taxation Department, Haryana, said, “The demand had been raised by stakeholders. The new policy has been brought to facilitate ease of doing business and promote business activity and nightlife.”

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Jaiveer, the owner of Godara Wines, said the move will be a ‘game changer’ for retailers in Gurgaon, who had lost a lot of business to a price war set off by changes in Delhi’s excise policy in recent months.

“Since November last year when Delhi’s new excise policy came in and several liquor vends in Delhi offered discounts, Haryana’s liquor vends have suffered substantial losses. Several retailers had to cut prices to compete with Delhi’s vends. With this option of extending hours of sale through the night, a lot of business can come in from neighbouring cities.”

Anil Pandey, the manager of Discovery Wines, said, “The policy has just been announced. In the short run, we can expect a marginal increase in revenue and traffic towards Gurgaon. In the policy, VAT and excise duty have also been slashed, so liquor prices will reduce and revenue will be maximised.”

Several retail vend owners said that the move for extending hours of sale at retail outlets in urban areas will also check the sale of spurious liquor in the district.

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The excise policy also states that bars and pubs can now operate till 8 am, an extension of two hours from the previous policy. “The licenced bars can remain open up to 2 am in the state on a normal licence. The timings of these bar licenses can be further extended up to 8 am on payment of an additional annual fee of Rs 20 lakh per annum,” said V K Beniwal, deputy commissioner of excise and taxation, Gurgaon (East).

“Bars and retail vends can now have the flexibility to operate longer after payment of additional fee,” said Beniwal.

Earlier, in Gurgaon, Faridabad and Panchkula, bars were allowed to remain open till 1 am, with a one-hour extension on payment of an additional annual fee of Rs 10 lakh per annum. The timings of these bar licenses could be further extended up to 6 am on payment of an additional annual fee of Rs 20 lakh.
Meanwhile, the policy has evoked mixed responses among bar owners.

Arvind Kumar, operating head of Chevron, a fine dining restaurant on Gurgaon-Faridabad road, said, “Overall, the provisions of the new policy are beneficial for the food and beverage industry and hospitality sectors. But, with the Delhi government planning to allow restaurants and pubs to remain open till 3 am, there will be a lot of competition. Only a few luxury clubs and pubs pay for the all-night licence. In a way, the bars will now be open 24 hours.”

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