Himachal rolls out new excise policy

THE POLICY AIMS TO STREAMLINE SUPPLY OF LIQUOR FROM MANUFACTURERS TO WHOLESALERS AND RETAILERS, A GOVT SPOKESPERSON SAID

SHIMLA:Liquor will be cheaper in HP under the new excise policy which was approved on Monday by the state cabinet. Eyeing more revenue, the BJP government in the hill state liberalised various conditions and approved the new policy.

Under the new policy, the minimum sale price has been replaced by maximum retail price in the excise policy for 2018-19. The policy aims to streamline supply of liquor from manufacturers to wholesalers and retailers, said a government spokesperson.

The policy will help the state to earn revenue of approximately ₹1,552.88 crore for 2018-19, an addition of ₹271.33 crore (21.17%) over the estimated revenue of ₹1,281.55 crore which is not likely to achieve.

In terms of Ease of Doing Business, the conditions for securing source license have been liberalised and numbers of excise levies have been reduced and the conditions regarding the Minimum Guaranteed Quota have been relaxed, giving relief to wholesalers and retailers, he said, adding that the security amount the retailers at the time of allotment has also been reduced from 18 to 13 per cent.

The Cabinet has scrapped the auction process and approved allotment of retail vends in a transparent manner by draw of lots and gave nod to policy for establishment of microbrewery for beer manufacturing in hotels, restaurants to boost tourism in the state.

Under the new policy, import fee on ENA, a major raw material, and beer has been reduced and Maximum Retail Price (MRP) has been imposed on the sale of liquor (MFL- Indian Made Foreign Liquor).

The rates will be displayed in all the retail vends and a levy of Re 1-per bottle in country liquor and Rs 2 on each bottle of IMFL. The revenue so collected would be allocated towards the Ambulance Services Fund and Welfare of Local Bodies.