Punjab cabinet nod to new excise policy
Addressing the media after the cabinet meeting here, finance and excise minister Harpal Singh Cheema said his department would mobilise ₹10,200 crore by the end of March this year as against the target of ₹10,145 crore for 2024-25.
The Punjab cabinet on Thursday approved a new excise policy for the year 2025-26, which aims to collect ₹11,020 crore of revenue.
The nod was given in a meeting of the council of ministers, chaired by chief minister Bhagwant Mann. Addressing the media after the cabinet meeting here, finance and excise minister Harpal Singh Cheema said his department would mobilise ₹10,200 crore by the end of March this year as against the target of ₹10,145 crore for 2024-25.
The target of mobilising revenue to the tune of ₹11,020 crore has been set for the financial year 2025-26. He said during the previous regimes, the revenue from the excise used to be ₹6,100 crore. “Excise collection is witnessing steady surge in the state during the current regime as for the first time the collection has crossed the mark of ₹10,000 crore,” said Cheema.
The new policy stipulates that in order to balance the existing retail trade and to provide opportunity to ensure better and widespread participation, fresh allotment of L-2/L-14A vends for the financial year 2025-26 will be done through e-tender.
Cheema also informed that to further strengthen enforcement, new excise police stations will be set up and a committee has been formed in this regard.
In order to mobilise additional revenue, Cheema said the quota for country-made liquor has been increased by 3%.
No change in country liquor rates
There will be no increase in country Liquor rates in the financial year 2025-26. In order to give relief to defence forces, the licence fee of their wholesale license has been reduced by 50% from ₹5 lakh to ₹2.5 lakh. The fee of standalone beer shops has been reduced from ₹2 lakh per shop to ₹25,000 per shop. To promote new investment in the State, new Bottling plants have been allowed to be set up in Punjab.
Increase in cow cess
The cow welfare cess on liquor has also been increased from ₹1 per proof litre to ₹1.50 per proof litre (quantity at a specified temperature with certain proportion of alcohol volume). It will lead to an increase in revenue from ₹16 to ₹24 crore, Cheema said.
