Hindustan Times (East UP)

New excise policy aims at ₹34.5k cr revenue; duty on beer slashed

Nod for premium retail vends at airports, wine tasting facility and sale of drinking accessorie­s, wine made out of locally produced fruits shall be exempted from excise duty for five years

- HT Correspond­ent letters@hindustant­imes.com

LUCKNOW: The Uttar Pradesh government on Saturday said the new excise policy approved by the state cabinet on Friday evening provides for setting up of premium retail vends at airports and aims at fetching a revenue of Rs 34,500 crore in 2021-22 as against the expected revenue of Rs 28,340 crore in 2020-21.

Wine tasting facility and sale of drinking accessorie­s would be allowed at premium retail vends. To promote production of wine within the state, the wine made out of locally produced fruits would be exempted from excise duty for a period of five years. Vintners (wine makers and merchants) shall be allowed retail sale of wine. Wine tavern shall also be allowed on the premises.

An official spokesman said the excise duty on beer had been reduced by Rs 15 to Rs 20 per bottle and the shelf life of beer would be nine months. The annual licence fees of country liquor, Indian Made Foreign liquor retail shops and model shops for 2021-22 had been increased by 7.5%. No increase had been made in license fee of beer retail shops. The sale of Low Alcoholic Beverages (L.A.B) shall be allowed in IMFL retail shops, model shops and premium retail vends in addition to the beer shops. The sale of imported liquor (BIO) and foreign liquor in Scotch category, with maximum retail price of Rs 2,000 or more will be permissibl­e in mono-cartons.

Additional chief secretary Sanjay Bhoosreddy said the policy proposed to promote the Ease of Doing Business and good governance. Brand registrati­on, label approval, bar and micro-brewery licenses will have the option to be renewed up to three years instead of requiring approvals every year.

A special campaign has been proposed to create awareness about the ill effects of drinking. The campaign will mainly focus on: (1) under- age drinking (2) drunken driving and (3) responsibl­e consumptio­n. A sum of Rs 1 crore has been reserved for the purpose.

The policy authorises the excise commission­er to create new shops equivalent to 2% of the total number of shops set up in 2020-21. New shops and the shops that have not been renewed would be set up through e-lottery / e-tender. It provides for decentrali­zation of approvals and simplifica­tion of processes. Integrated Supply Chain Management System (IESCMS) shall be implemente­d by computeris­ing the various processes of the department. The system of sale of liquor in retail shops using PoS (Point of Sale) machines would be implemente­d in 2021-22.

The new policy provides for introducti­on of high-quality grain ENA based UP-made liquor and provides for promotion of wine production in the state. To provide good quality liquor at economic prices, UP Made Liquor (in tetra-pack and of 42.8% strength only) made from grain ENA, shall be sold at an MRP of Rs 85 through country liquor shops.

Under the policy, renewal of country liquor, Indian made foreign liquor, beer, bhang retail shops and model shops has been permitted for 2021-22. The period of April 2020 to June 2020 shall be excluded in determinin­g the renewal criteria in view of the situation that arose in the fight against Covid-19. All retail shops (except beer) lifting the prescribed quota during July 2020 to March 2021 shall be eligible for renewal. The retail outlets of beer will be exempted from the requiremen­t of previous year’s equivalent lifting (the prescribed quota) in the third and fourth quarters of 2020-21. All beer shops would be eligible for renewal.

It provides for discontinu­ing the FL-2D licences for sale of imported liquor (BIO) and instead, registered customs bonds will supply imported liquor directly to wholesaler­s.

The custom bond warehouses located in the state will pay a permit fee of Rs 300 per bulk litre on sale of imported liquor to other states. To encourage exports from the state, brand and label approval process for exports to other states and countries is being simplified.

The sugar mills and distilleri­es in the state would install mandated modern electronic devices before December 31, 2021. The provision that no liquor shop shall be opened within five kilometres of the border of another district, without the consent of the collector of both the districts, will be done away with.

The power for renewal of micro-brewery licenses shall be delegated from the excise commission­er to the district collector (district magistrate). The district collector shall be authorized to amend the names of renewed shops. A licence shall be issued for purchase, transport and possess stocks in excess of prescribed retail sale limit to individual­s, on payment of Rs 12,000 licence fee and a security amount of Rs 51,000 per year subject to the conditions prescribed.

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