Himachal Cabinet approves excise policy for 2018-19

Liquor would be cheaper in Himachal Pradesh under the new excise policy which was approved today by the state cabinet.
Under the new policy, the Minimum Sale Price has been replaced by Maximum Retail Price in the excise policy for 2018-19.
The new policy aims at balancing the aspirations of citizens, consumers, manufactures, suppliers, bottlers, wholesalers, retailers and the Government and major emphasis has been laid on streamlining the supply of liquor from manufacturers to the wholesalers and to the retailers, said J C Sharma, Principal Secretary of Excise and Taxation.
The policy would help the state to earn revenue of approximately Rs 1552.88 crore for 2018-19, an addition of Rs. 271.33 crore (21.17 per cent) over the estimated revenue of Rs 1281.55 crore which is not likely to achieve.

In terms of Ease of Doing Business, the conditions for securing source license have been liberalised and numbers of excise levies have been reduced and the conditions regarding the Minimum Guaranteed Quota have been relaxed, giving relief to wholesalers and retailers, he said, adding that the security amount the retailers at the time of allotment has also been reduced from 18 to 13 per cent.
The Cabinet has scrapped the auction process and approved allotment of retail vends in a transparent manner by draw of lots and gave nod to policy for establishment of microbrewery for beer manufacturing in hotels, restaurants to boost tourism in the State.

Under the new policy, import fee on ENA, a major raw material, and beer has been reduced and Maximum Retail Price (MRP) has been imposed on the sale of liquor (MFL- Indian Made Foreign Liquor).

The rates will be displayed in all the retail vends and a levy of Re 1-per bottle in country liquor and Rs 2 on each bottle of IMFL. The revenue so collected would be allocated towards the Ambulance Services Fund and Welfare of Local Bodies.
The auction system had failed last year as no bidders came forward in Chamba and Una districts while in other districts, five to six rounds of auction were held.

A sum of Rs 122 crore is yet to be recovered from the venders which may increase by the end of the financial year. A major relief has been given to the wine producers in the state by allowing them to sell their products directly to retailers and bars. To further boost the wine industry and the horticulture sector, various excise levies have been reduced substantially and transportation conditions have been relaxed, besides increasing the Import Duty on wines produced out of the State.