Punjab Excise Policy 2019

*Salient features of Excise Policy for the year 2019-20*

· Allotment of liquor vends is proposed to be done through draw of lots.
· The rate of application has been fixed at Rs.30,000/- (including GST, if any).
· The number of liquor vends to remain at last year level i.e. 5750 approx.
· The groups shall largely remain the same as last year i.e. around Rs.5-Rs.6 crores and will only increase to the extent of increase in the levies during 2019-20.
· The number of groups shall also remain the same as last year i.e. 700 (approx.)
· Taking into account the consumption patterns during 2018-19, the quota of PML (Country Liquor) has been increased from 5.78 crore PLs to 6.36 crores PLs (+10%), of IMFL from 2.48 crore PL to 2.62 crores PLs (+6%) and of Beer from 2.57 crore BLs to 3.00 crore BL (+16%) under the Minimum Guaranteed Quota. Apart from this, an Addl.Fixed License Fee has been introduced. Against this fee, the licensee can lift and sell the liquor of his choice.

· Each license will be granted on a Minimum Guaranteed revenue basis which will consist of fixed license fee, additional fixed license fee and excise duties/levies chargeable on minimum guaranteed quota. The licensee will be liable to pay such minimum guaranteed revenue even if he does not lift the quota allocated to his license. Settlement will be on monthly basis.

· The fixed license fee will be chargeable at the time of grant of license. The fixed license fee will be fixed by the Collector-cum-DETC depending upon the quota of the group and the financial potential of the group.

· The rates of Excise Duty on retail for PML, IMFL and Beer has been retained at last year level i.e. Rs.324/- per PL, Rs.355/- per PL and Rs.55/- per BL respectively. Similarly, Excise Duty on wholesale stage for PML has been retained @ Rs.35/- per PL and on Beer Rs.62/- per BL for strong beer and Rs.57/- for light beer. On IMFL liquor, Excise Duty ranging from Rs.90/- to Rs.420/- has been charged depending upon the EDP of the brand.

· Excise Incidence on all kinds of liquor has been suitably fixed so as to secure Govt. revenue and also keeping in view that the market prices do not rise.

· The licensee can interchange upto 5% of his quota from PML to IMFL and from IMFL to PML, as per requirement. Similarly, he can also get converted 10% quota of PML to IMFL, subject to certain conditions.

· The ratio of Fixed: Open Quota of PML shall remain the same at 30:70.

· All L-2 licensees have been made eligible for grant of L-1 license and it will be a pre-requisite to have L-2 license in the district where L-1license is sought.

· The license fee of wholesale license of IMFL (L-1) has been rationalized. Now, there will be fixed fee of Rs.25 lacs against previous year fee of Rs.50 lacs and a variable fee of Rs.3/- per PL on IMFL and Rs.2/- per BL on Beer on the purchase of liquor by them.

· Unsold stock of 2018-19 will be carried forward in 2019-20 at a nominal fee.
· Retail licensee will charge only upto minimum retail prices of liquor for the functions to be held in marriage palaces/banquet halls.

· Bottling fee @ Rs. 1/- per BL has been introduced. This will generate a revenue of Rs. 30 Crores. This amount will be allocated by the Finance Department for the purpose of alcohol de-addiction.

· Special license fee equal to Rs.5/-per PL on PML and IMFL sold in Urban areas has been continued this year also, which shall be utilized for maintenance and upkeep of Gaushalas. This is in lieu of the Cow Cess. Similarly, for Rural areas, special license fee @ Rs.5/- per PL levied on PML and IMFL. This amount is to be utilized for the welfare of livestock, agriculture, Health and Swachh Abhiyan in Rural Areas.

· Till now, the distilleries/bottling plants/breweries were required to get their labels approved every year, even if there is no significant change in the label. Now, they will be required to get their labels approved, in case there is any change.

· On the pattern of Uttar Pradesh, the Brands of Liquor manufactured by Bottling Plants outside the State, will be registered in the State of Punjab, only after they met the criteria of annual turnover of business income not less than Rs.100 crores; the production capacity of such bottling plant should not be less than 5 lakh cases; and the bottling unit should have its business in atleast three States with minimum one crore population.
· For ease of doing business, 5-Star or higher category hotels have been allowed to serve liquor round the clock in their Bars.

· A new license shall be granted for sale of IMFL at the Airports. This licensee shall sell the liquor with EDP more than Rs.2500/- only. The license will be granted to person or organization which has received the requisite permission from the concerned Authority of the Airport.

· To open up the BIO trade and to make available all the brands, a new license (license L-1BB) has been introduced. This license shall be issued only to the Custom Bonded Ware House holder in Punjab or Brand Owning Companies.

· The department is expected to collect Rs.5450 crores approx. during the year 2018-19 from Excise, as against the collections of Rs.5136 crores during the year 2017-18. Further, the department expects to collect a revenue of Rs.6200 crores during the year 2019-20.

· If any licensee during the financial year 2019-20 gives 12% excess revenue over the fixed minimum guaranteed revenue for his group/zone shall be eligible for renewal in the financial year 2020-21, subject to the conditions to be specified by the Government later on.