Liquor to cost more in Haryana, pubs licence fee reduced

Haryana on Tuesday slashed the excise duty on super mild category beer and ready-to-drink beverages while effecting an increase in the excise duty for strong beer containing more than 5.5% alcohol by volume, Indian-made foreign liquor (IMFL), country liquor and metro liquor. The tax revision aimed at promoting low-alcohol-content drinks will come into effect from June 12, 2023. Approving the excise policy for 2023-24, the cabinet also gave its nod for the reduction in the L-10E licence fee for pubs.

As per the 2023-24 excise policy, the excise duty on super mild beer containing alcoholic content up to 3.5% v/v (alcohol by volume) has been reduced from ₹35 per bulk litre to ₹30 per bulk litre while for ready-to-drink beverages it has been decreased from ₹24 per bulk litre to ₹20 per bulk litre. The excise duty for mild category beer containing alcoholic content above 3.5% v/v and up to 5.5% v/v remained unchanged at ₹40 per bulk litre and the excise duty for strong beer containing more than 5.5% v/v alcoholic content has been increased from ₹45 per bulk litre to ₹50 per bulk litre. The licence fee for pubs in cities having a municipal corporation has also been reduced to promote the consumption of low-alcoholic content beverages. It has been reduced from ₹5 lakh to ₹4 lakh in Gurugram, Faridabad, Sonepat and Panchkula. For other districts having a municipal corporation, the pubs’ license fee has been decreased from ₹2 lakh to ₹1.5 lakh.

Country liquor, IMFL to cost more

Liquor will cost more from June 12 as the cabinet approved an increase in the excise duty for country liquor (50 degree proof) from ₹74 per proof litre to ₹78 per proof litre. Metro liquor (65 degree proof) will also cost more as its excise duty has been hiked from ₹82 per proof litre to ₹90 per proof litre.

There will be an approximate 3% increase in the seven categories of IMFL depending upon their ex-distillery price.

‘Excise revenue jumped in last 2 years’

An official spokesperson said that there has been an increase in the basic quota of country liquor, Indian-made foreign liquor and imported foreign liquor (BIO) in the new policy. “The excise revenue in the last two years has increased from ₹6,786 crore (2020-21 fiscal) to ₹9,687 crore in 2022-23 fiscal,’’ excise officials said.

The government is now aiming to cross ₹10,000 crore with the implementation of the 2022-23 excise policy. In the last two years, 100% of the licence fee at which the retail vends were allotted has been recovered by the state government, the spokesperson said.

Environment and Gau Seva cess

The new policy has imposed a retail permit fee with a targeted collection of ₹400 crore. The amount will be utilized for the environment and animal welfare (Gau Seva), the spokesperson. As an environmentally friendly measure, the new policy aims to discontinue the use of PET bottles in the bottling of liquor after February 29, 2024.

For ease of doing business, the labels of IFL (BIO) shall also be renewed at the district level as per the new policy. Also, in order to promote the micro small and medium enterprises sector, the licence fees for small (craft) breweries have also been reduced. The supervisory fee for wineries has been reduced to promote wineries in the state.

As per the new policy, the limit on the maximum number of retail liquor vends has been reduced successively from 2,600 to 2,500 in 2022-23 and from 2,500 to 2,400 in 2023- 24. The spokesperson said it has been decided that liquor vends shall not be opened in holy areas notified around Shri Mata Mansa Devi Temple in Panchkula and in villages where Gurukuls are functioning. In the current policy, the retail liquor vend zone size has also been decreased from four to two in a bid to allow more participants to apply for liquor shop licence through e-tender.

Increase in the basic quota of Country Liquor

There has been an increase in the basic quota of Country Liquor, Indian-made foreign liquor and imported foreign liquor (BIO). The spokesperson said that along with an increase in excise duty on country liquor and IMFL, the increase aimed to give a push to the excise revenue.

To curb pilferage of liquor by wholesale licensees, the penalty provisions have been made stringent and there will be a complete ban on liquor promotion advertisements on various platforms by the licensee, including on social media as well.

Caution boards to be installed outside bars, pubs

Caution boards would be displayed outside all hotels, pubs and bars, restaurants and café serving liquor under an excise license. Furthermore, to ensure the safety of staff and customers, it will be compulsory for all retail vends in urban areas, taverns and wholesale licensees to install fire-fighting equipment. The CCTV shall also be installed in all of the shops, and godowns.