The Punjab cabinet on Monday cleared the excise policy for 2021-22 and set a revenue target of ₹7,002 crore from the sale of liquor with an estimated increase of 20% from the current fiscal. In 2020-21, the target was ₹5,794 crore with a growth of 15% against ₹5,027 crore in the previous fiscal.
Also, there will be no increase in the sale price, especially that of Punjab medium liquor (PML), as the government has not increased taxes on country-made liquor. The cabinet fixed a sale target of 2.18 crore cases (26.16 crore bottles), including Punjab medium liquor, IMFL and beer. Liquor will be sold at 5,850 vends.
The state excise department proposed to collect the additional revenue by increasing quota (minimum quantity to be sold by a licensee) of PML by 12%; from 124 lakh cases in the current financial year to 138 lakh cases, IMFL by 6% from 38.33 lakh cases to 40.6 lakh cases and beer by 4% from 38.5 lakh cases to 40 lakh cases.
Licence fee for bars, restaurants slashed
To support retail vend owners, the annual fixed licence fee for bars in hotels and restaurants has been slashed by 30% and fee on consumption of liquor (assessed fee) was also reduced. The annual licence fee for marriage palaces has also been brought down by 20%.
Besides, the policy allows renewal of existing vends subject to lifting of additional liquor by the licensees. “It is likely to bring stability in the liquor trade and will also help generate additional revenue for the state,” said a government spokesperson.
“Our focus is on curbing distillation and sale of illicit liquor,” principal secretary (excise and taxation) A Venu Prasad said.
Also, the government has decided to place a moratorium on setting up of new distilleries, breweries or bottling plants. No new letter of intent (LoI) will be issued for establishing manufacturing units in the current year, it has also decided.
The wholesale trade of liquor would be monitored online by the government by replacing the present L-13 wholesale licensees.
To maximise revenues, a minimum guaranteed quota for imported liquor has been introduced in municipal corporations, A-class municipal committees, etc. To encourage ethanol manufacturing and proper utilisation of farm produce, a new license (E-2) has been introduced for setting up ethanol-based distillation plants.