The State government has announced major changes in the nomenclature of the Excise and Prohibition Department ahead of the introduction of GST regime from July 1.
The government has brought out an ordinance changing the nomenclature of some of the terms frequently in use as also the functions of officials at different levels. One of the prime reasons for the proposed changes in the nomenclature is said to be the impending GST regime which could have a bearing on the State’s tax revenues.
“The licences for bars and liquor outlets were termed as licence fee in the past. But this will attract 18 per cent tax forthwith once the GST regime comes into play. We have therefore decided to bring in changes to ensure that the main revenue source for the State remains intact,” a senior official said.
The department had accordingly decided to change the nomenclature of some of its revenue earning sources. The licence fee collected hitherto for bars will forthwith be termed as bar Excise tax while the permission given to liquor vends will be termed as Elite Shop Excise Tax. “This has been done as the Centre cannot impose any tax on the taxes already levied by the State. This will make sure that the State retains the tax it collects on the liquor side,” the official said.
