HomeLatestVends remain unsold under New Excise Policy in Chandigarh

Vends remain unsold under New Excise Policy in Chandigarh

HomeLatestVends remain unsold under New Excise Policy in Chandigarh

Vends remain unsold under New Excise Policy in Chandigarh

“Financial freedom is freedom from fear.” – said Robert Kiyosaki.

The new financial year (FY) 2024-25 has already begun, and It’s the time for every business, corporate sectors, government institutes, offices to update their rules, regulations and policies. This annual updating of policies is necessary to keep a check on revenues, liabilities, budgets, investments etc. Thus, the Government also came up with the new Excise Policy in Chandigarh for 2024-25. Not only this, the government also revised the policies and set up new budgets for Income Tax, Insurance, Banking, Water & Electricity, Transportation etc. To generate maximum revenue, overcome the losses and meet the required targets, change in policies is must.

Excise and Taxation Department

Rundown to new Excise Policy in Chandigarh

The government has laid new Excise Policy in Chandigarh which came in effect from 1st April 2024. The Excise and Taxation Department of Chandigarh has conducted a meeting under the chairmanship of Excise-Taxation Commissioner- Vinay Pratap Singh and Excise Collector cum Additional Excise and Taxation Commissioner- Harshuhinder Pal Singh. The instructions regarding the implementation of new Excise Policy in Chandigarh and sell the unsold liquor vends were discussed in the meeting.

With regards to the new Excise Policy in Chandigarh, there is no change in the rates of liquor in the shops and drinks will remain the same this year also. No increase in prices will be seen in Chandigarh under new financial year. The rates of hard drinks and beer will remain same this year also, which were previously there in the last financial year 2023-2024. A total of 97 contracts were to be opened for this financial year. But under new Excise Policy in Chandigarh only 60 liquor contracts will be opened, for the rest the auction process is yet to be done and financial bids will open after the clarification by the Election Commission.

Excise Policy in Chandigarh

For Restaurants, Clubs, Hotels and Bars

However, there may be an increase in prices at hotels, clubs and bars. A slight increase in the rates of liquor served to consumers in the city’s restaurants, clubs, and hotels instead of liquor vends can be seen. This is because the administration had increased some bar fees in this excise policy.

  • The fee for A category i.e. with 100 rooms in the hotel was increased from Rs 18 lakh to Rs 20 lakh.
  • The fee for B category, the bar license fee was increased from Rs 15 lakh to Rs 17 lakh.
  • The fee for C category is increased from Rs 12 to 15 lakh.
  • The fee for D category which includes restaurants, clubs and hotels and having 25 rooms, is increased from Rs 10 lakh to Rs 12 lakh.

Therefore, due to an increase in the fees, there will be a slight difference in the price of liquor in restaurants and bars in this new financial year.

liquor served at hotels

Online Registration Portal

The Excise and Taxation Department has included a provision of registration through online portal in new Excise Policy in Chandigarh. Through online system, licensees can renew the liquor brands/labels that were already approved last year in a simpler process. The licensees can submit the documents and fees along with an undertaking that there is no change in bottle brand, label, colour, size, FSSAI licence number etc. The approval will be issued immediately through an auto-mode after the required payment of fees is done.

This will promote an ease in doing business by reducing paperwork and physical visits. This will make the process faster and more convenient.

Liquor Vends find No Takers

Chandigarh Administration is unable to find buyers for the liquor vends. Despite 2 rounds of auction in March, Excise and Taxation Department has been able to allot only 60 vends out of total 97 under new Excise Policy in Chandigarh. (51 vends sold in first auction and 9 vends sold in second auction). In the third auction, bids had come for 6 contracts but due to lack of clarification from the Election Department, their financial bids could not be opened, and allotment could not be done.

The reason behind the unsold vends is high VAT and Excise Duty. Chandigarh levies a 12.5% VAT on ex-distillery price (EDP) and pays ₹450 to ₹3,500 per liquor case as excise duty. Whereas in Punjab, only 1% of Excise Duty and VAT is imposed.

Under the new Excise Policy in Chandigarh 2024-25, Excise Act, 1914 & the rules framed by department and MCC guidelines of ECI, the stakeholders are given a clear and strict directions to adhere to these guidelines. In case of any violation, stakeholder must face consequences of the actions taken.

Wrapping Thoughts

As per the new Excise Policy in Chandigarh, it is a positive news for the city people that there is no increase in prices of liquor. Additionally, the process of registration has also became easy through online portal. But due to high VAT and Duty, the vends remain unsold till yet. The Administration is looking forward to sell the vends and achieve the target of 97 of financial year 2024-25.

For more details get connected to the Instagram page of ChandigarhBytes.

To read other articles click on: ChandigarhBytes

Saloni
Saloni
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