Punjab cabinet's new excise policy will see imported foreign liquor rates drop, no increase in country liquor prices

Chandigarh: Prices of imported foreign liquor (IFL) will drop while there will be no increase in the rates of country liquor, Punjab Finance Minister Harpal Singh Cheema said on Saturday as the state cabinet gave its nod to the excise policy for 2024-25.

The new excise policy is aimed at garnering revenue to the tune of Rs 10,145.95 crore from the sale of liquor.

A decision to this effect was taken at a cabinet meeting chaired by Chief Minister Bhagwant Mann here.

Addressing reporters after the meeting, Cheema said the cabinet has approved the new excise policy — the third such policy of the Aam Aadmi Party (AAP) government.

'For the first time, more than Rs 10,000 crore will be generated from it,' he said.

Cheema said during the previous Congress regime, the revenue from liquor sale was merely Rs 6,151 crore.

The new excise policy envisages allotment of liquor vends through a draw of lots, he said, adding that instead of 172 groups, 232 groups have been formed this time.

'Liquor vends will be allotted through a draw of lots,' the minister said.

Later, in a statement, Cheema said the excise policy introduces significant changes to stabilise and reform the liquor trade.

He said the excise department intends to continue with the reforms initiated in the last two years. 'The group size for licensees has been strategically reduced and an adjustable licence fee has been introduced to streamline the process,' he said.

Cheema said the adjustable licence fee has been levied at the rate of Rs 200 per proof litre at the time of issuance of retail IMFL (Indian-made foreign liquor) and IFL passes and at the rate of Rs 50 per bulk litre at the time of issuance of retail beer passes.

To mobilise additional revenue and ensure enough availability of country liquor, the quota of country liquor (Punjab Medium Liquor or PML) in the financial year 2024-25 has been increased by 3 per cent, which is 8.286 crore proof litre, over the last year.

There will be no increase in the price of country liquor in 2024-25, Cheema said.

'Giving relief to the central police organisations, the licence fee of L-1 has been reduced from Rs 5 lakh to Rs 25,000,' he said.

The minister said the prices of IFL will come down in 2024-25 due to the rationalisation of the fee structure.

He said the security amount has been reduced from 17 per cent to 15 per cent.

To combat the issue of counterfeit liquor, a new mechanism mandates breaking used liquor bottles at marriage palaces after functions under the supervision of excise inspectors, Cheema said.

Bar licensees are now required to provide alcometers for voluntary alcohol-level assessment and display a signage promoting responsible drinking with the message 'Be Safe - Don't Drink and Drive', he added.

In another decision, the cabinet also gave its approval for allowing colonisers to pay the pending external development charges (EDC) in three instalments in a year and a half, Cheema said.

The EDC is collected by development authorities from the promoters of projects in accordance with the rates notified by the government from time to time.

It has been decided to reschedule the payment of the overdue EDC in three six-monthly instalments by charging interest at the rate of 10 per cent per annum, an official spokesperson said in a statement.

The cabinet has also given its nod to extending the one-time settlement scheme 2023 for the settlement of tax arrears, from March 31 to June 30.