Other States

Punjab government imposes ‘COVID cess’ on liquor

A liquor shop in Mohali, Punjab. File   | Photo Credit: AKHILESH KUMAR

Liquor is going to cost more in Punjab as the State government on Monday imposed ‘COVID cess’ on the sale of alcohol.

The Punjab government has raised additional excise duty and additional assessed fee on liquor in the range of ₹2 to ₹50 depending upon the type of liquor.

The move, that was given a go-ahead by Chief Minister Captain Amarinder Singh, will help the State mop up an additional revenue of ₹145 crore in the current fiscal, said an official statement.

The State is facing a revenue shortfall of ₹26,000 crore, which is 30% of the total budget revenue estimates for FY 2020-21, necessitating some tough measures to generate additional revenue, said the Chief Minister.

He accepted the recommendation of the Group of Ministers, which was constituted on May 12 to examine the matter, to levy additional excise duty and additional assessed fee on liquor during the current financial year.

The proceeds of the additional levy shall be utilised entirely for COVID-related expenditure, said the Chief Minister, directing the Department of Excise and Taxation to charge the cess in the current year, at the time of issuance of permits for transportation of liquor from L-1/L-13 (wholesale licences).

In line with the GoM’s recommendations, the Department of Excise and Taxation has decided to impose additional assessed fee on imported foreign liquor and imported beer, and additional excise duty on other types of liquor.

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Printable version | Jul 25, 2021 11:21:31 PM | https://www.thehindu.com/news/national/other-states/punjab-government-imposes-covid-cess-on-liquor/article31727003.ece

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