In a recent move, the Punjab State Cabinet has approved a new excise policy for the 2024-2025 fiscal year, which will surely cheer up some Punjabis. This policy will bring several changes, with prices set to decrease for imported foreign liquor (IFL) while the country liquor prices will remain the same.
The policy will bring forward a rationalized fee structure to streamline the process. For Indian Made foreign liquor the fees are levied at the rate of Rs 200 proof per liter and IFL passes and Rs 50 per bulk liter for retail beer passes. This will lead to a price drop of Rs 100-200 per bottle. For those who favor more traditional options, the new policy maintains the current pricing for Punjab Medium Liquor (PML) or country liquor.
Another change in the policy involves a change in the allotment of liquor vends (shops). Previously, the process relied on tenders, a system potentially susceptible to manipulation. Thus, the new policy opts for a draw of lots, aiming toward a more transparent and fair approach.
After the meeting, Punjab Finance Minister Harpal Singh Cheema addressed the reporters stating that a revenue of Rs 10,000 crore is expected to be generated after the implementation of these policies for this year, meanwhile, previously under the Congress regime, the revenue from liquor sale was only Rs 6151 crore.
To make sure that these targets are met and to meet the consumer demand for Punjab Medium Liquor, the government has also increased the quota by 3%, this move is likely intended to appease a significant portion of the population who favor more traditional and affordable alcoholic beverages.
He also added,” Giving relief to the central police organizations, the license fee of L-1 has been reduced from Rs 5 Lakh to Rs 25,000 ”. He also mentioned that the security amount has also been reduced from 17 percent to 15 percent.
Also to tackle the issue of counterfeit liquor, it has also been introduced to break the emptied bottles at marriage palaces after functions, and that too under the supervision of excise inspectors.
With lowered prices, overall consumption of alcohol might increase, in consideration to promote the message of Safe Drinking it is also mandated that bar license holders need to provide alcometers for voluntary alcohol-level assessment.
The Punjab Government’s new excise policy is a bold experiment with the potential to reshape the state’s liquor landscape. While the initial reactions are positive, the true impact will be revealed over time. This policy probably will boost tourism for those who enjoy a wider selection of imported spirits, but also imposes a threat to neighboring states where the IFL prices are lower.
In addition to the excise policy, the Punjab cabinet also approved colonizers to pay pending external development charges in the form of three installments over a period of one and a half years. This move will provide relief to colonizers and facilitate timely development.
The government has also extended the one-time settlement scheme 2023 from March 31 to June 30, providing taxpayers additional time to clear their outstanding dues.
