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EXCISE POLICY OF CHANDIGARH FOR THE YEAR 2019-20


Chandigarh, 8th March 2019: Hon’ble Governor of Punjab and Administrator U.T., Chandigarh Sh. V. P. Singh Badnore, after a detailed presentation by the Adviser, Secretary (E&T), ETC and other Senior Officers of the Excise Department, has approved new Excise Policy for the year 2019-20. The new Excise Policy aims at balancing the aspirations of the consumers, manufacturers, wholesalers/ retailers and the Government. Some of the salient features of this Policy are:-

1. The Excise Policy 2019-20 would help to earn revenue approx. Rs. 600 crores in comparison with Rs. 510 crores last year and increase of approx. 18% over the corresponding last year.
2. For the first time in U.T., Chandigarh, the allotment of licensing units will be made through  e-tendering system for more transparency and online system for issuance of permit/passes to facilitate Trade and Industry has also been introduced.
3. The number of licensing units (CL/IMFL) have been increased from 88 to 98. To curb the menace of cartelization and monopolistic practices, a single person/entity will be entitled to allotment upto a maximum of 10 vends only.
4. To promote low alcoholic contents beverages i.e. Beer, Wine and particularly to boost Indian Wine Industry the license fee has not been increased and kept at Rs. 12000/- for the whole year. Further the label registration fee of wine has been reduced from Rs. 15,000/- per brand to Rs. 10,000/- per brand.
5. Further the Excise Duty of Microbrewery has also been reduced from Rs. 50/- per BL to 30/- per BL to shift the consumers from hard liquor to soft liquor and the license fees of Microbrewery, Restaurants/ Pubs and Bar have  also not been increased from the last year.
6. Excise levies on Country Liquor have been increased by approximately 17% and excise levies on IMFL have been increased by approximately 20%.
7. In terms of ease of doing business, the conditions of security amount at the time of allotment have been relaxed from 25% to 20% and the payment of monthly license fee installments have also been increased from 8 to 10 installments.
8. The license fee of the License in form L-2D to promote sale of Imported Wine, Indian Wine, Ready to Drink (RTD) and Imported Beer to be granted to the shops/establishments registered under Goods and Service Tax Act, 2017 has been kept the same of Rs. 2 Lacs.
9. The basic quota of IMFL has been increased from 90 lacs PL to 100 lacs PL whereas basic quota of Country Liquor of 10 lacs PL has been reduced to 4 lacs PL with 20% conversion into IMFL.
10. Further for the first time in U.T., Chandigarh, the quota of Foreign Liquor (Bio Brand Whisky) has been fixed at 4 lacs PL with 20% conversion into IMFL to curb smuggling of liquor and to plug evasion of Govt. revenue.
11. It will be mandatory for all the retail licensees to issue an invoice on sale of liquor.
12. To promote sale of liquor through departmental stores, there is no change in the license fee of departmental stores which is Rs. 20 lacs only. However, the quota which was a major constraint of Departmental Stores has been reduced from 5,000 PL to 3,000 PL.
13. Alcometers for voluntary assessment of alcohol level by consumers, have been made mandatory for all hotels and restaurants serving liquor.


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