With CM nod to Covid cess on liquor, Punjab to mop up ₹145 crore revenue
Capt accepts ministers’ recommendations to levy additional excise duty and assessed fee imposed from June 1Updated: Jun 01, 2020 20:47 IST
Punjab chief minister Capt Amarinder Singh on Monday approved the imposition of Covid cess on liquor with effect from June 1.
The move will help the state mop up additional revenue of ₹145 crore in the current financial year.
The state is facing a revenue shortfall of ₹26,000 crore, which is 30% of the total budget revenue estimates, for financial year 2020-21, necessitating some tough measures to generate additional revenue, the CM said, accepting the recommendation of the group of ministers (GoM), which was constituted on May 12 to examine the matter, to levy additional excise duty and additional assessed fee on liquor during the current financial year.
The revenue generated from the additional levy shall be utilised entirely for Covid-related expenditure, the CM said, directing the department of excise and taxation to charge the cess in the current year, at the time of issuance of permits for transportation of liquor from L-1 and L-13 (wholesale licences).
Amarinder had earlier asked GoM, comprising the finance, education and housing and urban development ministers, to examine the proposal on levying special Covid cess on the sale of liquor, to partially recoup some of the revenue losses amid this unprecedented crisis.
In line with GoM’s recommendations, the excise department has decided to impose additional assessed fee on imported foreign liquor and imported beer, and additional excise duty on other types of liquor.