E-Paper
UT wine contractors urge tax parity with Punjab in excise policy
One of the primary suggestions is to reduce the excise duty and VAT to 1%, equivalent to Punjab, is to prevent customers from purchasing cheaper liquor across the border
The Chandigarh Wine Contractor Association (CWCA) has proposed key changes to the upcoming excise policy 2025-26, urging the UT excise and taxation department to align excise duty and VAT rates with Punjab. The suggestions aim to boost UT’s liquor trade, which has suffered due to price disparities.
The liquor trade in UT has been impacted by the Punjab excise policy. One of the primary suggestions is to reduce the excise duty and VAT to 1%, equivalent to Punjab, is to prevent customers from purchasing cheaper liquor across the border.
Darshan Singh Kler, CWCA president, said: “The excise duty and VAT should be equivalent to Punjab, as UT traders have been facing heavy losses due to these heavy taxes. The lending cost of liquor in Punjab is less than the lending cost of liquor in Chandigarh. This difference makes the liquor of Punjab much cheaper as compared to Chandigarh.”
The association also called for open quotas for IMFL, IFL, and country liquor and a reduction in import duties. They urged the authorities not to increase ex-distillery (EDP) and ex-brewery (EBP) prices, warning that higher costs could drive up liquor prices and deepen contractor losses.
Other suggestions include reducing EBP rates for beer, wine, and ready-to-drink beverages to encourage consumption of milder alcohol and extending the deadline for selling carry-forward stock to December 31, instead of June 30 in the new policy of 2025-26.
Advocate Sachit Jaiswal expressed optimism, noting that while contractors boycotted last year’s meeting, this year, they hope their recommendations will be incorporated into the policy.
The CWCA believes adopting these measures will benefit both the administration and traders, enhancing UT’s competitiveness in the liquor market.
