New Excise Policy

At the outset, it is in tune with the pattern of dealing with terms, conditions and the procedures prevalent in most of the states to issue a fresh Excise Policy on annual basis that the UT of Jammu and Kashmir has adopted it since last year. Undoubtedly, this procedure brings in more transparency and clarity especially in the kernel of the whole gamut , say in allotment of liquor vends as against prior to 2021, the period of the currency of such an authority or permission was not only unspecific but wholly ambiguous. It , therefore, denotes, as a natural corollary, that each year while reviewing the Excise Policy, element of elasticity should govern it rather than the contrary which primarily deals with how to make bidding of such vends more impeccable , transparent and clear wherein no deviation from the eligibility criteria should take place to obfuscate and avoid litigations and other complications later. The new Excise Policy which is scheduled to be effective from April 1, has new terms and conditions incorporated therein , by giving any name or under any head, is aimed at how the same could bring in more revenues to the coffers of the UT which otherwise are in dire need of the same. A target of a whooping amount of Rs.1600 crore revenue during the currency of the new Excise Policy -2022-23 is set to be achieved by the UT Government through Excise Duty and allied levies on the sale of liquor in Jammu and Kashmir.
Changes in the policy pertaining to Minimum Guarantee Revenue , Earnest Money Minimum Reserve bid, e- auction through secured portal and submission of property papers, are all related to financial aspects which again are the prime issues addressed in the new proposed policy to boost revenue collection. That is evident from taking the limit of Rs.5 lakh to Rs.7 lakh in respect of deposit of earnest money , though technically it is refundable to the vendee sometime after the usual formalities , however, it can be held back by the UT Excise Department or even cause it to be forfeited should any provision be violated by the vendee meaning retention of funds and treating them as short term revenue. In the same way, Minimum Guarantee Revenue is raised by 10 per cent where- under, a minimum amount of revenue is set as benchmark down which conditions could lead to termination of the terms of allotment of the liquor vend. In the same way, Minimum Reserve Bid has been increased from Rs.5 lakh to Rs.7 lakh. The endeavour of the Excise Department should be not to let the old conditions and circumstances enter the system from the backdoor to pave any way for encouraging access to multiple vends and interplaying of monopolistic practices and manipulated financial statements and documents, least a bidder not being a domicile of Jammu and Kashmir .
It is to be noted that as many as 51 new vends are decided to be opened in Jammu and Kashmir in which 45 are to be opened in different parts of Jammu alone and 6 only in Kashmir to increase the total number to 279 vends in the UT. The areas where these additional vends are proposed to be opened have been categorised as “un-served” and “under – served” and in that connection which type of criteria has been employed to ascertain such status, is not known . If it is that which locality does not have a liquor shop opened as yet , then the number of proposed additional vends shall still be felt as ”inadequate”. While on the one hand, the Government policy is supposed to dissuade people from taking to consuming liquor, if not to a situation of less than a total prohibition, on the other hand, just finding in the sale of liquor chances of enhancement of revenue , it is deciding to ”take care” of un-served and under-served areas by having additional liquor vends opened. Such a stand per-se is antagonistic iter-se. Looking at the sale of liquor as a golden goose for its revenue requirement to a considerable extent may be commercially and economically nice but largely not on social parameters. It is the bounden duty of the Government to ensure its revenues increased consistently to meet its ever increasing numerous expenditures for the welfare and progress of the people and thus having a prerogative to find various ways and segments to earn from but the targeted segment should be chosen only after weighing associated pros and cons of various hues.

Follow our WhatsApp channel