Haryana Cabinet Gives Nod To New Excise Policy 2023-24

The Haryana cabinet on Tuesday approved the new excise policy 2023-24, under which the retail permit fee has been imposed and the government aims to mop up Rs 400 crore for the environment and animal welfare fund.

There has also been a nominal increase in rates of excise duty on country liquor and IMFL.

The government aims to collect Rs 400 crore for Environment and Animal Welfare -- Gau Seva -- said in an official statement after the cabinet meeting held here Tuesday evening under the chairmanship of Chief Minister Manohar Lal Khattar.

"Reiterating the state government's commitment towards protecting the environment and animal welfare, the retail permit fee has been imposed in the new policy with a targeted collection of Rs 400 crore. The said amount will be utilised for the environment and animal welfare," it said.

According to the official statement, as an environmentally friendly measure, the new policy aims to discontinue the use of PET bottles in the bottling of liquor after February 29, 2024.

In the new Policy, there has been an increase in the basic quota of country liquor, Indian Made Foreign Liquor and Imported Foreign Liquor. 

"With this, there has also been a nominal increase in rates of excise duty on country liquor and IMFL. The increase aims to give a major push to the excise revenue," the statement said.

For ease of doing business, in the new policy, the labels of IFL (BIO) shall also be renewed at the district level. Also, to promote the MSME sector, the licence fees for small (craft) breweries have been reduced. 

The supervisory fee for wineries has been reduced to promote wineries in the state, the statement further said.

It has been decided that liquor vends shall not be opened in holy areas notified around Shri Mata Mansa Devi Temple in Panchkula and in villages in which 'Gurukuls' are functioning, the statement added.

To promote low alcohol content beverages, the excise duty on ready-to-drink beverages and beer under the mild and super mild categories has been slashed. 

The licence fee for the Pub category (L-10E), that is for the consumption of beer and wine only, has been reduced further," it said.

To curb pilferage of liquor by wholesale licensees, the penalty provisions have been made stringent and there will be a complete ban on liquor promotion advertisements on various platforms by the licensee, including on social media as well.

Caution boards would be displayed outside all hotels, pubs and bars, restaurants and cafes serving liquor under excise licence. 

In the new Excise Policy, the limit of the maximum number of retail liquor vends in the state has been reduced successively from 2,600 to 2,500 in 2022-23 and from 2,500 to 2,400 in 2023- 24.

In the current policy, the retail liquor vend zone size has also been decreased from four to two in a bid to allow more participants to apply for liquor shop licence through e-tender.

With an increase of almost two-fold in excise revenue in the last five years, Haryana's Excise Policies have successfully achieved and strengthened the long-term objectives of the state government in breaking the cartels, broad-basing the trade by facilitating the entry of new players of even modest means, establishing a transparent system of allotment of retail outlets and plugging the leakages, it said.

The government is now aiming to cross a benchmark of Rs 10,000 crore with the successful implementation of the Excise Policy- 2022-23. 

In the last two years, 100 per cent of the licence fee at which the retail vends were allotted has been recovered by the state government.

To ensure the safety of staff and customers, it will be compulsory for all retail vends in urban areas, taverns and wholesale licensees to install fire-fighting equipment. The CCTV Cameras shall also be installed in all of the shops/godowns.