Haryana cabinet approves excise policy, duty on Rum in CSD canteens reduced

March 05, 2019 08:28 PM

CHANDIGARH: Riding the crest of a 23 per cent increase in Excise in the last year, Haryana's Cabinet today approved the Excise Policy for 2019-20 with a projection of an all time high target of Rs.7,500 Crore indicating a year­-on-year growth of 19 per cent from this year's Rs.6,300 Crore. The Excise Policy emphasises the launch of Ease of Doing Business (EODB) initiatives involving Application and Grant of Licenses online through the Department's Portal Time limits have been framed for each activity under the EODB. The renewal of Labels and Permissions for exports will be automated. Disposal of expired or confiscated beer will also be carried out under an environment friendly manner through the Effluent Treatment Plants (ETPs) of the breweries.

Emphasizing its commitment to environment protection, at least 20 per cent of the liquor will be sold in glass bottles. The Policy also enables liquor manufacturers to market IMFL in Tetra Packs (biodegradable) of 180 ML, technically called Nips. To provide quality country liquor to the consumers at lower rates, the Policy allows the launch of superior 65 degree proof country liquor called Metro Liquor to be distilled and marketed by the State based distilleries.

The Policy fulfills the expectations of the armed forces by lowering Excise Duty on Rum sold through CSD Canteens in the State by Rs. 61 per proof litre.

With a view to moulding the consumption from strong to mild liquor, the State has allowed micro breweries to opt for a license without seeking a mandatory license for hard liquor. The Policy also permits the establishment of state of the art, `Avant-garde' outlets in Malls and licensed shopping areas in Gurugram, Faridabad and Panchkula to enhance the marketing experience of all the consumers. The Policy also rationalizes Excise Duty on IMFL, Country Liquor and Beer to maximise revenue and to simultaneously promote the industry as a whole. To cater to the growing demand, the annual mandatory lifting quota for Country Liquor and IMFL has been marginally raised from 10 to 10.5 Crore Proof Litre and from 6 to 6.5 Crore Proof Litre respectively.

The Policy also allows more suppliers in the Imported Foreign Liquor to break the shackles of the monopolies while ensuring that revenue increase of the previous two years is further enhanced.

To ensure that there is no manufacture and supply of illicit/smuggled liquor, 350 police personnel would be deputed in the Department exclusively for this purpose. The Excise Policy provides for stringent norms of sale for bars and restaurants, particularly in towns like Bhiwani, Kaithal, Hisar, Jind and Fatehabad to ensure that licenses are not mis-utilised for sale of bottled liquor in competition of legitimate L-2 and  L-13 licensees. For quicker clearances and decision making in the department, district level officcrs have been delegated the authority of Collector Excise to a large extent. The Retail Zones have largely been retained of the same size with six vends located in each geographical position.

To facilitate individuals to keep. enhanced stock of liquor through his life time for self consumption at home, the licence for this purpose (L­50) has been made more affordable and it would now be possible to obtain this license online through the department's portal. In urban areas, besides the earlier two sub vends, two additional sub vends can be provided in every zone to ensure that no bootlegging takes place within the zone. In rural areas, villages with population exceeding 5000 will be allowed an additional sub vend as well. To facilitate potential licenses who want to bid higher than 25 per cent above reserve price of a zone, the Earnest Money Deposit (EMD) has been rationalised to 15 per cent instead of 21 per cent.

Liquor will not be sold in 57 Panchayats which passed a resolution to that effect in the prescribed time. Liquor will also not be sold in the holy cities of Thanesar MC limit and Pehowa. Liquor will also not be allowed to be sold in villages where Kanya Gurukul is functioning.

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