The Government of Jammu and Kashmir has notified a new excise policy for 2020-21 by a notification dated 31st August 2020. The policy came into force from the 1st of September 2020.
Some of the key highlights of the policy are as follows:
The policy lists the various types and forms of licences required for different categories of sale or trade in liquor
Inter alia, the policy stipulates that in order to encourage the transition from high alcohol content beverages to low alcohol content beverages, licences will be issued to Bars with Micro Brewery at locations permitted by the Excise Commissioner.
Furthermore, to put an end to the bootlegging, illegal distillation of liquor and to promote the availability of safe drinks, new licences may be granted for the sale of liquor off the premises of wine shops. This will be applicable to un-served or under-served areas as are identified after consultation with the stakeholders concerned.
Moreover, in these cases, the Excise Department will reserve a fixed number of licences/ licenced zones for Ex-Servicemen, Specially Abled, SC/ST/OBC and economically weaker sections. For this purpose, 12% of all retail sale of foreign liquor sold only to the public, will be reserved for these sections. Out of this 12%, each of these six categories will be assigned 2% quota of autionable liquor vends.
Additonally, the policy imposes a ban on the import of Indian Made Foreign Liquor (IMFL) brands having MRP up to Rs. 600 per bottle into J&K. This is intended to protect the local liquor industry.
Further, the policy states that liquor shall not be sold in plastic bottles and must be sold in glass/ PET bottles/ tin cans only.
The policy also prescribes licence fees, excise duties, import duties, bottling fees, assessment duties, etc. payable for different types of licences. In this regard, the policy aims to rationalise the number of taxes, duties and other levies to optimize revenues for the common good.
Pertinently, the new excise policy has withdrawn the additional 50 per cent excise duty on liquor (which was levied in May), commonly known as corona tax.
The policy also stipulates for a Social Responsibility Corpus Fund which will be utilized for educating the masses about the harmful effects of liquor.
