Chandigarh excise policy out: Liquor to cost 15% more | punjab | chandigarh | Hindustan Times
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Chandigarh excise policy out: Liquor to cost 15% more

No change in rate of beer, wine; prices still lower than that in Punjab, Haryana; number of vends increased from 77 to 93.

punjab Updated: Mar 21, 2018 12:01 IST
HT Correspondent
HT Correspondent
Hindustan Times, Chandigarh
The policy states that it wants to promote low alcoholic content beverages.
The policy states that it wants to promote low alcoholic content beverages.(HT File )

Bachhus lovers will have to shell out more to get their favourite brand with the UT administration hiking the price of both countrymade and Indian Made Foreign Liquor (IMFL) by up to 15%.

However, under the new excise policy released for 2018-19 on Tuesday, the rates of beer and wine remain unchanged. In fact, the policy states that it wants to promote low alcoholic content beverages.

2018-19 policy highlights
  • The excise policy will come into force from April 1, 2018
  • The total quota of IMFL has been increased from 74-lakh proof litre to 90 lakh proof litre and of countrymade liquor from 8-lakh proof litre to 10-lakh proof litre
  • Number of vends go up from 77 to 93
  • Now, departmental stores registered under the GST Act can sell imported and Indian wine besides imported beer
  • In terms of ease of doing business, the security amount at the time of vend allotment has been relaxed from 40% to 25%

Meanwhile, despite the hike, the prices are still lesser than that in neighbouring Punjab and Haryana.

The new policy will come into force from April 1. The exact prices will be determined once vends are allotted through a bidding process in the last week of March, said Wine Merchants Association president Satya Pal.

Under the new policy, the number of vends has gone up from 77 to 93. Last year, the number of vends had been slashed because of the highway liquor ban. In terms of ease of doing business, the security amount at the time of allotment has been relaxed from 40% to 25%. It will be mandatory for all retail licencees to issue an invoice on sale of liquor.

Also, now departmental stores registered under the Goods and Service Tax Act, 2017, will be able to sell imported and Indian wine besides imported beer after obtaining a new license with a fee of Rs 2 lakh.

Dept targets 25% higher revenue

In 2018-19, the UT excise and taxation department has set a target to earn Rs 450-crore revenue as compared to Rs 354 crore collected last year.

The quota of liquor bottles has been increased for IMFL from 74-lakh proof litre (PL) litre to 90-lakh PL and for countrymade liquor from 8-lakh PL to 10-lakh PL.

Old and new
  • Antiquity Blue, which earlier cost Rs 700, will now cost Rs 800
  • McDowell’s , which earlier cost Rs 300, will now cost Rs 345
  • Royal Stag, which earlier cost Rs 350, will now be Rs 400
  • Blenders Pride, which earlier cost Rs 580, will now cost Rs 660

Strength of alcohol is measured in terms of ‘Degree Proof’. Strength of such alcohol 13 parts of which weigh exactly equal to 12 parts of water at 51°F is assigned 100 Degree proof. Apparent volume of a given sample of alcohol when converted into volume of alcohol having strength 100 Degree is called PL.

Meanwhile, extra licence fee/excise duty on countrymade liquor has been nominally increased from Rs 28 to Rs 30 per PL and on IMFL from Rs 30–Rs 325 per PL to Rs 33–Rs 325 per PL.

To promote low alcoholic content beverages and Indian wine Industry, the fee has been reduced from Rs 20 per proof bulk litre to Rs 15 per proof bulk litre.

Meanwhile, a cess of Rs 2 per bulk litre has been introduced on wholesale licence. The collected fee will be given to Indian Red Cross Society’s Chandigarh branch.

Chandigarh gulped 42,000 bottles last year

City residents guzzled down 42,000 bottles of liquor daily, on average, from April 1, 2017, to March 20 this year. The consumption was 50% more than that in 2016-17. In all, 1.52 crore bottles were consumed, of which 1.31 crore were of Indian Made Foreign Liquor (IMFL) and the remaining 21 lakh were of countrymade liquor.