Liquor may go the pizza way in Mohali. In a bid to give a new high to the tipplers, the Punjab Government is mulling to introduce a policy that will see liquor being delivered home in Mohali.
The State Government is planning to introduce a platform for online home delivery in Mohali city on an experimental basis.
“The online home delivery of liquor in Mohali will be done in consultation with all the retail licensees of the city,” said a Government spokesperson on Friday following the Cabinet meeting during which the new Excise Policy for 2020-21 was approved.
The spokesperson made it clear that the experiment would not, however, be undertaken even if a single licensee objects to it.
As of now, the online home delivery system has been introduced in Maharashtra. If implemented, Punjab would be the second State in the Country.
“The decision to introduce online liquor home delivery system would, in a way, help in checking the drunken driving and accidents due to that besides adding to the state’s revenue, giving a boost to the liquor business,” a senior government official told The Pioneer.
The official said that under this system, the alcohol would be delivered at customers’ homes through platforms just like the e-commerce web portal. “Presently, this is just a proposal…It needs to be discussed in detail at various levels and with all the stakeholders involved,” added the official.
The State Cabinet, in its meeting, approved the new excise policy with a continued focus on maintaining stability in the liquor trade while protecting the state’s excise revenue.
Under the new policy, the existing licensees, who attain 12 percent excess revenue over the Minimum Guaranteed Revenue (MGR), will be allowed renewal for the year 2020-21.
A target of Rs 6,250 crore has been fixed as against anticipated collection of Rs 5,676 crore of 2019-20, as per the new policy.
The excise revenue is expected to go up to Rs 5,676 crore in 2019-20 from Rs 5,150 crore in 2018-19 as a result of the sweeping reforms initiated by Capt Amarinder Government in its previous pro-trade and pro-retail excise policy, said an official spokesperson.
In the new policy, the number of groups had been retained at last year’s level of 756. The MGR from retail vends during 2020-21 is to be realized at Rs 4,850 crores, as against Rs 4,529.40 crores during 2019-20. The MGR of each group or zone during 2020-21 has been increased by 8 percent over 2019-20.
The Government can offer renewal to existing licensees if they pay 12 percent excess revenue over the MGR fixed, for the year 2021-22, and the renewal fee will vary from one to four percent, depending on the response of application in the previous year.
Spokesperson pointed out that the Department would invite applications for renewal of groups or zones of 2019-20 for the year 2020-21 through a public notice. The MGR of each group or zone will be fixed at eight percent higher than the MGR of last year, 2019-20.
After the approval of Deputy Excise and Taxation Commissioners (DETCs)-cum-Collectors of Divisions, the details would be displayed on the notice boards of the concerned districts and also be put on the website of the Department.
The licensee will submit an application to the Assistant Excise and Taxation Commissioner (AETC) concerned, along with renewal fee at Rs 10 lakhs, along with details of payments made till date and an undertaking that he would deposit 12 percent excess revenue of the MGR fixed for his group for the year 2019-20 by March 20, 2020.
The licensee would also be required to submit an Affidavit under order 7 of the Punjab Intoxicants License and Sale Order, 1956, besides depositing prescribed Fixed License Fee and Additional Fixed License Fee on the dates prescribed in the Excise Policy 2020-21, that is Rs 10 lakhs by February 28, 2020, and the balance amount by March 23, 2020.
License fee of distilleries was rationalized last year on the basis of installed capacity. On similar lines, the license fee of bottling plants will be rationalized on the basis of bottling lines and of Breweries on the basis of capacity.
Cow cess is to be charged as per provisions of 2019-20, in the shape of Special License Fee, whereas quarterly assessed fee to be charged from bars has been marginally increased.
Further, the State Government is contemplating imposition of minimum excise duty on the basis of installed manufacturing capacity of various manufacturers (distilleries and bottling plants). This may require an amendment in law or rules, which can be done during the year. Flow meters would be made mandatory for bottling plants.
LIQUOR PRICES LIKELY TO GO UP
With the Government enhancing the license fee and excise duty, the liquor prices is expected to go up.
Giving details, the spokesperson said that Fixed License Fee of Rs 600 crores during 2019-20 is to be increased to Rs 625 crores while the Additional Fixed License Fee of Rs 120 crores during 2019-20 is also to be increased to Rs 385 crores under the new policy.
“Instead of any significant increase in the quota of different kinds of liquor, the increase has only been in the additional license fee, because the licensees can lift quota of liquor as per their choice, out of this Additional Fixed License Fee,” said the spokesperson adding that generally, the fees for licenses has been modestly increased or kept at the existing level.
The excise duty at retail is to be increased nominally (Rs five for PML, Rs four for IMFL and Rs 2 for beer). At wholesale stage, there is no increase in excise duty rates at PML, in the case of IMFL, the increase is approximately five percent and in the case of Beer, while the duty has been enhanced from Rs 62 per BL to Rs 68 for strong beer.
As per the new policy, the Ex-Distillery Price (EDP) for fixed quota of PML has been fixed at Rs 271.11 per case. Now, the retail licensee will be allowed to interchange his quota of PML, IMFL and Beer up to 15 percent.
The VAT paid on imported (BIO) liquor is also to be adjusted in additional fixed license fee and additional 12 percent revenue requirement for renewal of licenses next year. The L-2B license is to be issued to the retail licensees only in his area for sale of BIO brands in partnership with General Stores whose GST taxable turnover is Rs one crore during last year.
The number of retail vends have been retained at last year’s level of 5835. Bottling Fee on IMFL has been increased from Re one per bulk litre to Re one per BL (for EDP up to Rs 650 per case), Rs 1.25 per BL (for EDP 651-2000 per case) and Rs 1.50 per BL (for EDP above 2000).
The licensee can carry forward unsold quota of 2019-20 to next year, that is 2020-21 at nominal transfer fee of Rs 25 per PL (for PML), Rs 40 per PL (for IMFL), Rs 45 per PL for Imported Foreign Liquor, Rs 12 per BL for Imported Fee and Rs 10 per BL for Beer.
MARRIAGE PALACES TO FACE PENALTY FOR UNAUTHORISED CONSUMPTION
Under the new policy, the marriage palaces would be held responsible for unauthorized consumption of liquor on their premises. On first offence, penalty of Rs 25,000, on second offence Rs 50,000, and on third offence, a penalty of Rs one lakh would be charged.
