Liquor to pinch a bit more with 5% Covid cess in Chandigarh

On account of additional excise duties, cow cess and now Covid cess imposed this year, liquor prices in the city are up by 20% to 25%

The UT administration on Thursday imposed a Covid cess of 5% on all liquor bottles (over the minimum retail price) being sold in the city.

The new 5% Covid cess imposed by the Chandigarh administration will bring an additional revenue of ₹18–₹20 crore to aid necessary emergent measures for checking the epidemic, said UT adviser Manoj Parida. (HT file photo)

Punjab governor and UT administrator VPS Badnore gave the nod to Chandigarh municipal corporation to levy Covid cess on all categories of alcohol sold through wholesale licences. It comes into force with immediate effect and will remain effective up to December 31, 2020, or till further orders whichever is earlier.

In January this year, the administration had notified cow cess at ₹5 to ₹10 per bottle on 750ml country liquor, 650ml beer and 750ml whisky, and imposed it from May 16. On the same date, the administration had also imposed an additional excise duty of 12% on alcohol.

On account of additional duties and cess imposed this year, liquor prices in the city are now higher by 20% to 25% .

UT adviser Manoj Kumar Parida said the Covid cess will bring the administration an additional revenue of ₹18–₹20 crore. The cess has been imposed to aid necessary emergent measures for checking the epidemic. It will be remitted to MC’s special Covid cess fund by UT’s excise and taxation department. Badnore has directed that this fund be retained in a separate account till clarification from MHA is received.