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EXCISE POLICY OF U.T., CHANDIGARH FOR THE YEAR 2020-21


Chandigarh, 6th March 2020: 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 2020-21. 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 for the year 2020-21 would help to earn revenue approx. Rs. 680 crores in comparison with Rs. 617 crores for the year 2019-20, an increase of approximate 10% over the year 2019-20.
2. The allotment of licensing units will be made through complete e-tendering system for more transparency and complete 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 92 to 95. 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. 10,000/- per brand to Rs. 7500/- per brand.
5. Further the Excise Duty of Microbrewery has not been increased and it will remain @ 30/- per BL to shift the consumers from hard liquor to soft liquor and the license fees of Microbrewery have  also not been increased from the last year.
6. Excise levies on IMFL have been increased by approximately 10% except on high end brands.
7. 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.
8. The basic quota of IMFL has not been increased which is 100 lacs PL whereas basic quota of Country Liquor of 4 lacs PL has been increased to 8 lacs PL with 10% conversion into IMFL.
9. Further, the quota of Foreign Liquor (Bio Brand Whisky) has been reduced from 4 lacs PL to 3.30 lacs PL with 10% conversion into IMFL.
10. The quota of country liquor has been rationalized keeping in view less demand in City Shops and quota of IFL has also been rationalized keeping in view the less demand of IFL in village shops
11. 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 and there is no change in quota which is 3,000 PL.
12. To promote tourism in Chandigarh, Five Star or above category Hotels are allowed to serve liquor round the clock and the licence fee proposed to increase  to Rs. 15 lacs from Rs. 12 Lac and also allowed the facility of Mini Bar for the occupants of the rooms.
13. Alcometers for voluntary assessment of alcohol level by consumers, have also made mandatory for all hotels and restaurants serving liquor.
14. In order to promote ‘Swach Bharat Abhiyan’, the retail licensees will have to maintain cleanliness and hygiene in and around the shop, failing which penalty will be imposed.
15. The Cow Cess has been levied and will be applicable from 01st April, 2020. This cess will be levied @ Rs. 5 per bottle of 750 ml of Country Liquor, Rs. 5 per bottle of 650ml of Beer and Rs. 10 per bottle of 750 ml of whisky and will be deposited by the wholesale licensees in the dedicated bank account of Municipal Corporation.

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