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March 23, 2012

Liquor to remain cheaper in chandigarh

Chandigarh/Mohali, March 23
Chandigarh would continue to be favourite with boozers, as according to the proposed Excise Policy 2012-2013 of the UT, liquor in the city will remain cheaper than that sold in Mohali.
Though the UT is yet to come out with its new excise policy, Punjab’s decision to increase the excise duty by 15 per cent and increase the quota of liquor would see bacchus lovers from the region heading towards the city.
The difference in the liquor prices at the two cities, varying between 10 per cent and 20 per cent, would remain despite the UT proposing to generate more revenue from the sale of liquor vends by basing the last year’s highest quoted price of each vend as the base licence fee of the respective vend. Last year, at least three vends on the outskirts of the UT had fetched over Rs 2 crore as licence fee.
By doing so, the department would do away with the prevailing system of fixing a uniform licence fee. The new Excise Policy of the UT is expected to be out next month.
On the other hand, the Punjab Excise and Taxation Department, in its new policy 2012-2013, has announced to continue with the prevailing system of draw of lots. For the draw of lots to be held on March 28, the excise department had formed 25 groups with maximum concentration of vends along the Punjab border with the UT.
UT Finance Secretary VK Singh said various issues related to the new excise policy were today discussed at a meeting. “Nothing has been finalised yet,” he said.
“The increase in the licence fee will certainly have an effect on the liquor prices but it will still be cheaper than liquor sold in Mohali as the Punjab Excise and Taxation Department has not only increased the excise duty, but has also increased the liquor quota,” said a senior official.
Though the UT officials are tight-lipped on the excise policy 2012-13, it is believed that the proposed move to substantially increase the licence fee would fetch a much higher revenue than the last year’s projected revenue of Rs 127 crore. The exact tax structure would be known once the UT comes out with excise duty. Sources reveal that the department was also seriously considering to lower the fixed liquor quota from the existing 27 lakh liquor cartons, as the traders had not been able to lift 13 lakh cartons.
With over a month still left for the start of the new policy (May 2012), the traders had yet to lift around 9 lakh cartons. The Punjab excise officials said after fixing the quota, smuggling of liquor from the UT had come down.
To further curb the menace, Punjab had doubled the fines under the excise laws. Regular checks on the border had also been proposed by Punjab. By rough estimates, the price of popular brands of the IMFL were expected to increase by around Rs 15 per bottle, a bottle of beer is expected to cost around Rs 60. On the other hand, the price of IMFL would increase by anything between Rs 30 and Rs 50 per bottle while a bottle of beer would cost around Rs 70 per bottle.
No opinion on social aspect
A few years ago, former Adviser to the UT Administrator Lalit Sharma had constituted a committee of experts from the police, health and social organisations to analyse various aspects of the liquor policy. Issues like location of vends at spots prone to road accidents and public nuisance were discussed. But this year, no such public opinion has been sought by the UT.

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