The Chandigarh administration on Wednesday approved a new Excise Policy for fiscal 2023-24, aiming to bring uniformity with neighboring tri-cities -- Panchkula and Mohali -- and to promote low-alcoholic drinks.

Also, liquor is expected to be slightly cheaper now after the policy comes into force as the cow cess has been reduced on it. But a new tax, clean air cess, will now be levied.

The policy for 2023-24 aims at balancing the aspirations of consumers, manufacturers, wholesalers, retailers, and the government,  a statement said on Wednesday. A major development for the retail vends, clubs, restaurants, hotels, and bars is the extension in time for operating.  Now the liquor vends will be operational from 9 a.m. to midnight, while bars till 3 a.m.

To promote low-alcoholic drinks, license fees and duties have not been increased on beer, wine, ready to drink, among others.

"Cow cess has been reduced from existing Rs 5 to Re 1 per bottle of 750 ml of country liquor, while Rs 5 to Re 1 per bottle of 650ml of beer and Rs 10 to Rs 2 per bottle of 750 ml or 700ml of whisky," said the administration. The new rates will be subject to the notification issued by a local government department.

However, clean air cess will be levied as and when notified by the Department of Science and Technology.

To curb the illegal sale of liquor, the track and trace system will be introduced. Penalty for non-maintenance of minimum rates by the retail vends has been kept stringent with the closure of the vend for three days for each detected violation.

The Chandigarh Administration has kept the excise duties on all types of liquor the same as in the previous year’s policy.  Quotas of Indian-made foreign liquor (IMFL), country liquor (CL) and imported foreign liquor (IFL) have been kept unchanged. Quarterly quota lifting quantities have been eased based on the suggestions of stakeholders.

The allotment of retail vends will be made through an e-tendering system for more transparency. Separate notifications regarding auction dates will be issued.

Chandigarh Administrator Banwarilal Purohit approved the policy after a detailed discussion with the adviser to the administrator, secretary (E&T), excise & taxation commissioner and other senior officers of the excise department, the statement said.