Excise Department, has approved new Excise Policy for the year 2023-24

Kumar Madhukar

Chandigarh 01 March 2023, Hon’ble Administrator U.T., Chandigarh after a detailed discussion with the Adviser to the Administrator, Secretary (E&T), Excise & Taxation Commissioner and other senior officers of the Excise Department, has approved new Excise Policy for the year 2023-24. The new Excise Policy has been formed after careful consideration of suggestions received from various stakeholders at consultative sessions held by Department of Excise and Taxation. 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. Keeping in mind the suggestions received from various stakeholders, Excise Duties on all type of liquor have been kept same as that of current Excise Policy.

2. Quota of India Made Foreign Liquor (IMFL), Country Liquor (CL) and Imported Foreign Liquor (IFL) has been kept unchanged. Quarterly quota lifting quantities have been easied based on suggestions of stakeholders.

3. To bring uniformity with Panchkula and Mohali, open timings of retails sale liquor vends have been made at par with Mohali & Panchkula i.e.  from 09:00 AM to 12:00 midnight.

4. For healthy competition in market and to promote ease of doing business, the entire basic quota of country liquor has been kept open and to be supplied to the retailers as per their choice of bottling plant & brand.

5. For ease of doing business and to encourage the new entrants in the field of Imported Foreign Liquor segment, the condition that brand owning Company can issue authorization letter maximum to five persons/ licensees has been dispensed with. Now brand owning companies can issue authorization letter to any number of licensees. Also the condition of having custom bonded warehouse only in Chandigarh is removed and now custom bonded warehouse can be located anywhere in country outside Chandigarh as well.

6. To facilitate the stakeholders and to minimize the time in approval of label/ brand registration, Online facility of label registration has been introduced and the same will now be approved by the Collector (Excise). Simplified procedure for renewal of registrations of already registered brand/label has been incorporated in online portal.

7. The allotment of Retail Vends of Liquor will be made through           e-tendering system for more transparency. Separate notification regarding dates of auction will be issued.

8. EMD (Earnest Money Deposit) has been reduced to half for better participation in the bids.

9. To promote ease of doing business, the new bar licensees (L-3/L-4/L-5) will be required to pay only 50% of the annual licence fee in case licence is granted after 30th September.

10. Due to good response of licensees, provision for additional 2 hours for operation of bars upto 3:00 AM has been kept in new Excise Policy as well.

11. For this year, Cow Cess has been reduced from existing Rs. 5 to    Rs.1 per bottle of 750 ml of Country Liquor, Rs. 5 to Rs. 1 per bottle of 650ml of Beer and Rs. 10 to Rs. 2 per bottle of 750 ml/ 700ml of whisky. The new rates will be subject to notification issued by Local Government Department, Chandigarh Administration in this regard.

12. Leasing of Bottling Plants will not be allowed from this policy year.

13. Hours of operation of Bottling Plants for dispatches from Bottling Plants has been increased to 9:00 AM – 6:00 PM.

14. Track & Trace system to be introduced during this policy year to curb illegal sale of liquor.

15. Penalty for non-maintenance of Minimum Rates by retail vends has been kept stringent with closure of retail vend for 3 days for each detected violation.

16. To promote low alcoholic drinks, license fees and duties have not been increased on Beer, Wine, RTD (Ready to Drink) etc.

17. Clean Air Cess will be levied, as & when notified by Department of Science & Technology, Chandigarh Administration.

Copy of Excise Policy 2023-24 is available at http://etdut.gov.in/ExciseOnline/