New excise policy: Liquor set to get costlier in Haryana from June 12
Hike in excise duty, licence fee for bars, bottling fee for beer estimated to increase revenue by over ₹110 crore; the state government took approval from the Election Commission for bringing the new policy during the imposition of model code of conduct as the allotment of liquor vends has to be made by inviting e-tenders.
Effecting a modest increase in the excise duty for country and Indian Made Foreign Liquor (IMFL) which will anyway jack up the liquor prices in the state June 12 onwards, the Haryana Council of Ministers on Wednesday approved the 2024-25 excise policy. The 2023-24 excise policy comes to an end on June 11. The increase in the excise duty on liquor will fetch an additional revenue of ₹83 crore for the state government. On the whole, the state government expects a revenue increase of about ₹250 crore in 2024-25 year.
As per the new liquor policy, the excise duty on country liquor (50 degree proof) has been increased from ₹78 per proof litre to ₹82 per proof litre and from ₹90 per proof litre to ₹95 per proof litre for metro liquor (65 degree proof). The excise duty on IMFL brands having ex-distillery price in the range of ₹1,051 to ₹3,500 per case have been uniformly increased by ₹5 per proof litre. The
For instance, the excise duty on IMFL brands with ex-distillery price in the range of ₹1,051 to ₹1,200 per case has been increased from ₹135 per proof litres to ₹140 per proof litres while the IMFL brands with ex-distillery price in the range of ₹2,501 to ₹3,500 has been hiked from ₹155 per proof litres to ₹160 per proof litres.
The state government took approval from the Election Commission for bringing the new policy during the imposition of model code of conduct as the allotment of liquor vends has to be made by inviting e-tenders. The excise and taxation department will start e-auction for allotment of retail vends for 2024-25 from May 27.
Basic quota for country liquor increased
The new policy entailed an increase in the maximum basic quota for country liquor from 1,150 lakh proof litres to 1,200 lakh proof litres. A ₹40 crore increase in excise revenue is being projected because of the increase on country liquor quota.
The maximum basic quota for IMFL will, however, remain 700 lakh proof litres. As per the policy, the maximum number of retail vends for country liquor and IMFL will remain 2,400 in the 2024-25 policy.
Licence fee for bars increased
The licence fee for bars and hotels has been increased in the new policy. Licence fee for bars in five-star hotels will cost ₹30 lakh per annum instead of ₹25 lakh per annum while the licence fee for bars in four-star hotels has been increased to ₹25 lakh per annum from ₹20 lakh per annum.
The licence fee for bars in three-star hotels in Gurugram has been increased from ₹18 lakh per annum to ₹22 lakh per annum. The licence fee for bars in three-star hotels in Faridabad, Panchkula and Sonepat has been increased from ₹14 lakh per annum to ₹16 lakh per annum while the licence fee for bars in three-star hotels in the remaining districts has been hiked from ₹10 lakh per annum to ₹20 lakh per annum.
The licence fee for all other bars operating from restaurants has also been increased from ₹16 lakh per annum to ₹20 lakh per annum for Gurugram, ₹15 lakh per annum from the existing ₹12 lakh per annum for Faridabad, Panchkula and Sonepat and ₹10 lakh per annum from the existing ₹8 lakh per annum for the remaining districts. The assessment fee on supply of Indian Made Foreign Liquor (bottled in origin) to bars has also been hiked. The increase which will come into effect from June 12 will bring an additional revenue of about ₹15 crore. Bottling fee for beer supplied within Haryana has been increased to ₹12 per bulk litre from ₹11 per bulk litre while the bottling fee for beer supplied outside Haryana has been increased to ₹1.50 per bulk litre from ₹1 per bulk litre.
Assessment fee for imported foreign liquor hiked
The state government has also increased the assessment fee on Imported Foreign Liquor (bottled in origin) from ₹75 bulk litre to ₹85 per bulk litre for wine, from ₹50 per bulk litres to ₹65 bulk litres for beer and ₹100 per bulk litre for whisky. This increase is expected to bring an additional revenue of about ₹60 crore.
Track and trace mechanism for imported foreign liquor too
The new policy has extended the quick response (QR) code-based track and trace system for the sale of imported foreign liquor as well. The track and trace system was introduced in 2023-24 for IMFL and country liquor. Holograms or QR code-based track and trace systems are affixed on liquor bottles to safeguard against spurious and adulterated liquor. The minimum retail sale price of imported liquor brands shall be fixed by the excise department to streamline the business.