50% addl tax withdrawn, fee imposed on bottling of liquor
Licenses to be renewed after one year instead of 5 yrs
Mohinder Verma
JAMMU, Sept 1: The administration of Jammu and Kashmir Union Territory today unveiled the new Excise Policy containing several important provisions for rationalizing the number of taxes, duties and other levies in order to optimize revenue. Moreover, several steps have been prescribed to check bootlegging/smuggling of Bottled In Origin brands in the UT from the neighbouring States/UTs.
Even 50% additional Excise Duty imposed few months back has been withdrawn to provide respite to the liquor consumers as well as vendors and to bring about discipline and effective enforcement, fixed license fee has been introduced for all kinds of licenses at different rates.
A provision has also been incorporated in the policy to ensure that validity of renewal of license shall be for one year strictly as per J&K Liquor License and Sale Rules and not for five years as was mentioned in the earlier policy, which had received widespread criticism.
The Excise Policy has come into force from today and will continue to remain applicable till March 31, 2021. This year the formulation and notification of policy got delayed because of situation caused by Novel Coronavirus (COVID-19).
As per the Government notification, the objectives of the policy are to rationalize the number of taxes, duties and other levies to optimize revenues for common good, to bring about greater social consciousness about the harmful effects of consumption of liquor and alcoholic beverages, to encourage transition from high to low alcoholic content beverages, to check bootlegging/ smuggling of Bottled In Origin brands in the UT of J&K from neighbouring States/UTs and to provide choice of brands and adequate places for consumption to its consumers and a level playing field to those in this business.
Addressing press conference, Excise Commissioner J&K, Rajesh Kumar Shavan said that additional 50% Excise Duty on liquor, which was levied in the month of May and commonly known as “Corona Tax” has been withdrawn from today after the implementation of the new Excise Policy.
To generate additional revenue for the common good, bottling fee at the rate of Rs 10 to Rs 12 per bottle has been introduced on bottling of all kind of liquor and the existing Excise Duties have been marginally increased, he further said, adding to bring about discipline and effective enforcement, fixed license fee has been introduced for all kind of licensees at different rates.
“The renewal of licenses issued by the Excise Department shall be as per the provisions of the J&K Liquor License and Sale Rules”, read the policy. As per the Rule 14 of the J&K Liquor License and Sale Rules, all applications for the grant or renewal of licenses, which require the orders of the Excise Commissioner, should be received through the proper channel in the Excise Commissioner’s Office before the end of October in each year.
However, in the Excise Policy 2019-20, this Rule was violated for the reasons best known to the concerned authorities and it was provided that grant of new license will be for a period of five years.
The new policy states that in order to ensure strict compliance of the Act and the Rules, if any case of breach is noticed, the Excise Commissioner will be competent to suspend/cancel the license as per the provisions of the J&K Excise Act and Rules framed thereunder.
In order to arrest bootlegging and illicit distillation of liquor and to ensure availability of safe drinks, the Excise Commissioner may grant new licenses for sale of liquor as per the Act and the Rules in un-served and under-served areas for which Excise Department will conduct a survey and prepare a list of such areas.
“The locations for new vends will be properly identified in consultation with all the stakeholders and in due deference to the Rules and the allotment of vends in these areas will be made through e-tendering in a secure and transparent manner as per General Financial Rules”, the Excise Commissioner said while quoting the policy, adding “while granting new licenses, the department will earmark fixed number of licenses or the licensed zones for ex-servicemen, special-abled SC/ST/OBC and economically weaker sections”.
He disclosed that 12% of the total liquor vends to be auctioned at any time in future is proposed to be earmarked/set-aside for these categories and within the overall ceiling of 12% each of these six categories will be assigned 2% quota of auctionable liquor vends.
To encourage unemployed youth, the Excise Commissioner said that for new-start-ups established by availing loans under any of the self-employment scheme of the Government, one will get concession on up-front fee. “They have to pay Rs 5 lakh instead of Rs 7 lakh and the bars at the tourist locations and areas falling under the Tourism Development Authorities will pay half of amount prescribed under annual license fee”, he added.
For commercial properties meant for tourist accommodation located in the water-bodies in the tourist areas permits will be issued for serving liquor by charging Rs 1 lakh as annual fee. Even banquet/party halls, which intend to serve liquor, shall get registered with the department by paying annual registration fee of Rs 50000 as against the earlier fee of Rs 5000.
He disclosed that Army and paramilitary forces will get liquor at much cheaper rates as the Excise Duty and Import Duty on the Canteen Stores Department would be 25% less than that on civil for all types of liquor. “There were some high and premier brands which were not available to the consumers in J&K but the Government has now decided to encourage import of these brands and will levy 20% instead of 35% tax on such brands”, he added.
Meanwhile, liquor shops in the entire Union Territory of J&K remained closed today in view of new rate list being finalized by the Excise Department in the light of the decision of the Government to waive off additional Excise Duty imposed to meet losses caused by COVID-19 pandemic.
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