Liquor to turn costlier in Haryana by 5-10%

The state govt today approved new excise policies, aims to garner Rs 3,700 cr by 2014-15

Liquor will turn costlier by 5 to 10% in Haryana with state government today approving new excise policy, aiming to garner revenue of Rs 3,700 crore by 2014-15.

With state government wanting to ensure consumption of low-alcohol content in beer segment, the new policy raised the excise duty on strong beer (alcohol contents more than 5%), making it expensive by Rs 5 per bottle, a senior official of Haryana Excise Department said here.

The excise duty structure will remain unchanged except that the rate of excise duty will be increased from Rs 20 to Rs 28 per bulk litre for the beer containing alcohol contents more than 5%, he said.

The state government did not raise the basic quota of both country liquor as well as Indian Made Foreign Spirit (IMFS) as it will remain unchanged at 900 lakh proof  litres and 500 lakh proof litres, respectively.

Moreover, the number of liquor vends also will also remain same that is 2,265 vends of country liquor and 1,235 vends of IMFL.

The licensees, however, will have to renew their licences for the year 2014-15 in the month of February, 2014. The licence fee for the year 2014-15 will be five% more than the licence fee of the year 2013-14, the official said.

Allotments will be made on the basis of highest bids received for the year 2013-14.

The licensee is now required to give a security deposit at the rate of 21% of the licence fee for the year 2013-14 which will be adjusted in the last two instalments of the year 2014-15, he said.

In order to provide stability to various stakeholders, it has been decided to allot liquor vends for a period of two years that is for the years 2013-14 and 2014-15, mobilising revenue of more than Rs 3,500 crore and over Rs 3,700 crore, respectively.

The state government also decided to allow country liquor sale of liquor which is distilled thrice in order to bring more purity in liquor quality. At present country liquor is double distilled.

"In the interest of the health of the public it has been decided that with effect from April 1, 2013 only Extra Neutral Alcohol (ENA) based spiced country liquor of 50% degree proof will be sold in Haryana. The country liquor directly manufactured from rectified spirit will not be allowed to be sold in the State," the official said.

The Excise Policy of the year 2012-13 is likely to yield a net revenue of about Rs 3,100 crore in the financial year.