CHANDIGARH: The Punjab government has persisted with its L-1 licence in the excise policy for 2023-24 announced on Friday. However, it has decided not to renew the existing L-1 licences and these will be granted afresh while retail traders have been given the option of getting their licences renewed.
The L-1 licence was one of the most contentious provisions in the existing policy. As the government was facing accusations of promoting monopoly, the decision not to renew the L1 licences will pave the way for other traders to get the licence.
The decision not to renew the L1 licences was taken by the group of ministers formed by the AAP government to examine the draft of the excise policy for 2023-24. The annual licence fee for this licence has been fixed at Rs 5 crore in addition to a monthly non-refundable security amount ranging between Rs 3.3 crore and Rs 10 lakh. Each L-1 will have to open at least two bonded warehouses in each excise range with a fee of Rs 1 lakh chargeable for each warehouse. The AAP government has set a target of generating revenue of Rs 9,754 crore in 2023-24. It claims to have earned Rs 8,896 crore through the existing policy, a rise of 42.2% from the previous year.
To avail the renewal offer, retail traders will have to deposit 0.6% of the prescribed licence fee of a group as renewal fee along with the application. There has been no change in the formation of groups, which has been kept at 169 having 6,374 vends. The groups which are not renewed will be allotted through the e-tendering process. The prescribed licence fee for such groups will be the reserve price. Modification of such groups will be allowed.
Home permit fee cut
Keeping liquor at home has become cheap as the AAP government has reduced the annual fee for an L-50 permit from Rs 2,500 to Rs 2,000 and for lifetime permit, from Rs 20,000 to Rs 10,000. The condition that an L-50 permit for lifetime will be issued to a person who has been issued annual permit for three years continuously has also been removed.
No shops at airports
There will be no retail sale shops inside airports. Earlier, there were two groups in Amritsar and Mohali airports. The licensee will have to put up a notice board in front of the vends declaring that drinking liquor is injurious to health and that consumption and trafficking of narcotic drugs is prohibited under the law.
Fee slashed for forces
To make liquor available at affordable rates to defence and paramilitary forces, the AAP government has reduced the licence fee from Rs 50 lakh per annum to Rs 5 lakh per annum. The rate of value-added tax (VAT) on liquor for defence has also been reduced to 1 % plus 10% surcharge.
Beer rate to be fixed
The minimum retail sale price and maximum retail sale price of beer will be fixed. The rate of liquor to be served in marriage palaces will be printed on the permits. Marriage palaces not registered with the excise department will be allowed to serve liquor on payment of Rs 15,000 per day per function.
VAT on bars reduced
The VAT (value-added tax) rate has been slashed from 20% plus 10% surcharge to 13% plus 10% surcharge on liquor sold by beer bars, hard bars, clubs and microbreweries.
The L-1 licence was one of the most contentious provisions in the existing policy. As the government was facing accusations of promoting monopoly, the decision not to renew the L1 licences will pave the way for other traders to get the licence.
The decision not to renew the L1 licences was taken by the group of ministers formed by the AAP government to examine the draft of the excise policy for 2023-24. The annual licence fee for this licence has been fixed at Rs 5 crore in addition to a monthly non-refundable security amount ranging between Rs 3.3 crore and Rs 10 lakh. Each L-1 will have to open at least two bonded warehouses in each excise range with a fee of Rs 1 lakh chargeable for each warehouse. The AAP government has set a target of generating revenue of Rs 9,754 crore in 2023-24. It claims to have earned Rs 8,896 crore through the existing policy, a rise of 42.2% from the previous year.
To avail the renewal offer, retail traders will have to deposit 0.6% of the prescribed licence fee of a group as renewal fee along with the application. There has been no change in the formation of groups, which has been kept at 169 having 6,374 vends. The groups which are not renewed will be allotted through the e-tendering process. The prescribed licence fee for such groups will be the reserve price. Modification of such groups will be allowed.
Home permit fee cut
Keeping liquor at home has become cheap as the AAP government has reduced the annual fee for an L-50 permit from Rs 2,500 to Rs 2,000 and for lifetime permit, from Rs 20,000 to Rs 10,000. The condition that an L-50 permit for lifetime will be issued to a person who has been issued annual permit for three years continuously has also been removed.
No shops at airports
There will be no retail sale shops inside airports. Earlier, there were two groups in Amritsar and Mohali airports. The licensee will have to put up a notice board in front of the vends declaring that drinking liquor is injurious to health and that consumption and trafficking of narcotic drugs is prohibited under the law.
Fee slashed for forces
To make liquor available at affordable rates to defence and paramilitary forces, the AAP government has reduced the licence fee from Rs 50 lakh per annum to Rs 5 lakh per annum. The rate of value-added tax (VAT) on liquor for defence has also been reduced to 1 % plus 10% surcharge.
Beer rate to be fixed
The minimum retail sale price and maximum retail sale price of beer will be fixed. The rate of liquor to be served in marriage palaces will be printed on the permits. Marriage palaces not registered with the excise department will be allowed to serve liquor on payment of Rs 15,000 per day per function.
VAT on bars reduced
The VAT (value-added tax) rate has been slashed from 20% plus 10% surcharge to 13% plus 10% surcharge on liquor sold by beer bars, hard bars, clubs and microbreweries.