Chandigarh Govt. rolls out Excise Policy for the year 2022-23; aims to balance the aspirations of the consumers, manufacturers, wholesalers/retailers and the Government

With a view to balance the aspirations of the consumers, manufacturers, wholesalers / retailers the Chandigarh Government has issued an Excise Policy for the year 2022-2023 (“Policy”). The Policy will be effective from 1st April, 2022 and will remain in force till 31st March, 2023

Key Highlights of the Policy:

• To ensure availability of more variety and brands, label/brand registration fees has been kept the same;
• 65 degree proof of Country Liquor has been introduced apart from the existing 50 degree proof and 60 degree proof. This will increase choice for the consumers and make better quality of Country Liquor available;
• To curb spurious liquor, pilfer proof seals are made mandatory in Country Liquor bottles. Further, the Bottles to be used for bottling of country liquor of 65 degree proof shall be made of ‘pucca glass’ manufactured on fully automatic machines;
• Now, 50% of the basic quota of Country Liquor will be distributed equally amongst the Bottling Plants and 50% of the basic quota will be kept open. Further, additional quota will also be kept open. This will increase choice to the Retail vends to obtain supplies as per their choice of bottling plant and brand;
• The overall basic quota has been reasonably increased by 13.4% as per consultation with stakeholders;
• Excise Duties have been increased by approximately 5.5%;
• Minimum Retail Sale Price has been reasonably increased in the range of 5% to 10% considering input costs and taxes;
• Imported ‘Ready to Drink’ has been allowed for sale in U.T. Chandigarh;
• The allotment of Retail Vends of Liquor will be made through e-tendering system for more transparency;
• Online facility for issuance of permit/passes and applying various Excise Licenses has been introduced to facilitate stakeholders;
• Earnest Money Deposit (“EMD”) has been reduced for better participation in the bids;
• Mandatory computerized billing to be introduced by 1st October 2022 and penalty of Rs. 5000/- introduced on non-issuance of receipt;
• Working Hours for liquor vends shall be 9 AM to 11PM throughout the period of this Policy. In case of outbreak due to coronavirus, all the excise licensees will comply with the directions given regarding working hours/ time schedule for opening & closing of liquor vends/ establishments etc. announced by the Government from time to time to contain the spread of Covid-19. No compensation of any type whatsoever in licence fee, quota etc. will be given to the licensees on account of reduction in working hours;
• Facility of 2-hour extension in closure timings (i.e., up to 3 AM) given to Restaurants / Bars / Hotels on payment of additional license fees;
• Round the clock service of liquor has been allowed in 3 Star & 4 Star Hotels on payment of additional license fees;
• Track & Trace system to be introduced during this policy year to curb illegal sale of liquor;
• Stringent penalty for non-maintenance of Minimum Retail Sale Price by liquor vends is introduced. Vends will be sealed for 3 days on first violation itself;
• CCTV cameras to be introduced in all retail vends by 1st May 2022;
• Penalty of Rs. 50,000/- is introduced on sale of expired liquor by retail vends;
• To promote low alcoholic drinks, license fees and duties have not been increased on Beer, Wine, RTD (Ready to Drink) etc.
• Considering the request of Hotels & Restaurant Associations and to give support to them, their license fee has been kept the same.

A copy of the Policy is attached herewith for ease of reference.

Source: Government of Chandigarh