Haryana excise dept to sell liquor directly to retailers from April 1

As part of the initiative to transform the excise department, the Haryana government has decided that it will operate as a corporation from April 1 and sell Indian

As part of the initiative to transform the excise department, the Haryana government has decided that it will operate as a corporation from April 1 and sell Indian Made Foreign Liquor (IMFL) directly to retailers after purchasing it from manufacturers.

Officials said that the excise department will also form an ‘Excise Preventive Force’ to curb illegal sale of liquor in the state. (Parveen Kumar/HT PHOTO)

Officials said the objective is to bring more transparency and accountability to the functioning of the liquor industry as well as the excise department in the state, which is one of the highest revenue earners for the government. The state excise department earned ₹5,000 crore in revenue in fiscal 2016 -17 and have set a revenue target of ₹6,100 crore for financial year 2017-18. Also, from the start of the next financial year (April 1), IMFL will be sold at the maximum retail price (MRP) and the new price policy will also be announced by the excise department.

Currently, IMFL is sold on the basis of the minimum retail price decided by the trader or the retailer. Under the new policy, the role of middlemen would be reduced to a minimum and the aim will be to maximise the revenue earned by the state government.

Seven committees will be formed to restructure the department, so that it can function as a corporation.

People in the know of the changes on the anvil said the proposed excise corporation will supply liquor to private outlets after purchasing it from manufacturers. The corporation will purchase the IMFL from manufacturers or distilleries directly and the stock will be kept at warehouses across the state.

Read I Gurgaon: State unveils new excise policy, alcohol MRP & license fee rates hiked

“There will be no role for middlemen in the new financial year. The manufacturers will directly sell to the corporation and the stock will be supplied to retailers. There will be fixed margins for retailers and the price shall be decided by the (excise) department,” HC Dahiya, deputy excise and taxation commissioner, Gurgaon, said.

The corporation will also draw up a list of manufacturers already working across the counter. The list will be verified and updated from time to time.

Currently, the manufacturers pay duty, pick the stock and supply it across the state. Further, L1(wholesalers) supply their stock to retailers and retail outlets are charged a licence fee.

However, once the proposed changes come into effect, the government will sell liquor to retail outlets directly. Once bought from manufacturers, the excise department will decide the MRP and retailers will only get commission on the sale of liquor.

The state government is expecting a rise in revenue collection once the new policy is rolled out. The policy is on the lines of those already in force in other states such as Delhi, Rajasthan, Kerala and Tamil Nadu.

Under the new policy, manufacturers will be penalised if they don’t sell their stock within a stipulated time. The corporation will clear the bills as per the sale of liquor and it will be done on a weekly basis.