No VAT on liquor licence for marriage functions

The Punjab government today decided to do away with the Excise and Taxation department's practice of charging VAT while granting liquor licenses for functions at marriage places across the state.
Deputy Chief Minister Sukhbir Singh Badal, who holds the Excise and Taxation portfolio, also announced that liquor licenses will now be granted online from April onwards.
This move is aimed at doing away with the inconvenience caused to the public in approaching the excise offices for the license, an official spokesman said here today.
The public would now have to pay only licence fee for serving liquor during parties or marriage ceremonies.

"With this decision the people holding functions in marriage palaces would get big relief. There are about 1700 marriage palaces in the state which organize an average of 40,000 to 50,000 marriages in a year," the spokesman said.
Badal took this decision on suggestions received from various quarters to make the process of obtaining licences for serving liquor during marriage ceremonies and parties easier and hassle free.

According to feedback received by the government, those desirous of procuring liquor licences have to approach the department prior to the function to pay licence fee for drinks and VAT on food to be served to the guests.

This resulted lot of inconvenience to the public in making arrangements for the celebrations, the spokesman said.
The Deputy CM also asked the banquet place owners to reconsider the earlier option offered by the government to pay lump sum tax. This could not be implemented earlier as the owners were divided on this issue.
Badal also directed the excise department to facilitate trade and industry by introducing lump sum fee in as many sectors as possible.
If any trade and industry wanted to suggest any compounding scheme they were welcome and could submit their proposals with the department, he added.

The spokesman further said the government had resolved to provide hassle free and ease of doing business in the state and offered Rahat scheme, social welfare measures and fiscal incentives to the traders.