Punjabs New Excise Policy: Cheers to Lower IFL Prices, Steady Country Liquor Rates

In a significant move, the Punjab Cabinet, led by Chief Minister Bhagwant Mann, has approved the new excise policy for the financial year 2024-25. This policy aims to generate substantial revenue while introducing crucial reforms to stabilize and transform the liquor trade in the state.

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Key Highlights of the New Excise Policy

1. Revenue Generation:

The new excise policy sets an ambitious target of garnering revenue to the tune of Rs 10,145.95 crore from the sale of liquor. This marks a significant increase compared to the previous Congress regime, during which the revenue from liquor sales stood at a mere Rs 6,151 crore.

2. Liquor Vends Allotment:

To ensure transparency and fairness, liquor vends will be allotted through a draw of lots. This process replaces the previous system of 172 groups and introduces 232 groups, providing more opportunities for participation.

3. Adjustable License Fee:

The new policy introduces an adjustable license fee to streamline the process. This fee is levied at the rate of Rs 200 per proof litre for retail IMFL and IFL passes and Rs 50 per bulk litre for retail beer passes.

4. No Price Hike for Country Liquor:

In a relief to consumers, the prices of country liquor (Punjab Medium Liquor or PML) will remain unchanged in 2024-25. This decision aims to provide affordability and support responsible consumption.

5. Rationalization of Fee Structure:

The prices of imported foreign liquor (IFL) are set to decrease in 2024-25 due to the rationalization of the fee structure. This move is expected to make IFL more accessible to consumers.

6. Combating Counterfeit Liquor:

To address the issue of counterfeit liquor, a new mechanism has been implemented. It mandates the breaking of used liquor bottles at marriage palaces after functions under the supervision of excise inspectors.

7. Promoting Responsible Drinking:

Bar licensees are now required to provide alcometers for voluntary alcohol-level assessment and display signage promoting responsible drinking with the message "Be Safe - Don't Drink and Drive."

Additional Decisions

In addition to the excise policy, the Punjab Cabinet also approved several other important decisions:

1. Colonisers' EDC Payment:

Colonisers will be allowed to pay the pending external development charges (EDC) in three instalments over a period of one and a half years. This move aims to provide relief to colonisers and facilitate timely development.

2. Extension of One-Time Settlement Scheme:

The one-time settlement scheme 2023 for the settlement of tax arrears has been extended from March 31 to June 30. This extension provides taxpayers with additional time to clear their outstanding dues.

The new excise policy for 2024-25 represents a comprehensive and forward-thinking approach to revenue generation and liquor trade regulation in Punjab. By introducing reforms, rationalizing fees, and promoting responsible drinking, the Punjab government aims to strike a balance between economic growth and social responsibility.