Cabinet approves new Excise Policy 2023-24

• 11 May 2023

Why in News?

New Excise Policy 2023-24 has been approved in the cabinet meeting chaired by Haryana Chief Minister Manohar Lal on 9 May 2023.

Key Points:

• It is worth mentioning that in the last two years, 100 percent recovery of the license fee on which the retail shops were allotted has been done by the state government.
• The new Excise Policy 2023-24 also provides the facility to generate resources, which can be used for funding developmental projects.
• As an environment-friendly measure, the new policy aims to phase out the use of PET bottles in liquor bottling after 29 February 2024.
• Along with this, a retail permit fee has been imposed with a targeted collection of Rs 400 crore. This amount will be used for environmental and animal welfare.
• Reiterating the state government's commitment towards environment protection and animal welfare (gau seva), a retail permit fee has been imposed in the new policy, which aims to collect Rs 400 crore. This amount will be used for environmental and animal welfare.
• In the new policy, the label of IFL (BIO) will also be updated at the district level for ease of doing business. Also, to promote the MSME sector, the license fee for small (craft) breweries has been reduced. To promote wineries in the state, the supervisory fee of wineries has been reduced.
• In the new excise policy, the maximum number of retail liquor contracts in the state has been reduced from 2600 to 2500 in 2022-23 and 2500 to 2400 in 2023-24 respectively.
• Along with this, taking another major decision from the point of view of public welfare, it has been decided that liquor shops will not be opened in the notified holy areas around Shri Mata Mansa Devi Temple in Panchkula and in the villages where Gurukuls are running.
• In the current policy, the size of retail liquor sale zones has also been reduced from 4 to 2 to allow more participants to apply for liquor shop licenses through e-tendering.
• The new policy has increased the basic quota for domestic liquor, foreign liquor made in India and imported foreign liquor (BIO). Along with this, excise duty on domestic liquor and IMFL has also been marginally increased.
• In order to promote low-alcohol beverages, excise duty has been reduced on ready-to-drink beverages and beer under mild & super-mild categories. In addition, the license fee for the pub category (L-10E) i.e. for consumption of only beer and wine has been further reduced.
• In the new policy, the provisions of fines have been tightened to curb the piracy of liquor by the wholesale licensees and there will be a complete ban on advertisements of liquor promotion by the licensee on various platforms including social media.
• Caution boards will be displayed outside all hotels, pubs and bars, restaurants and cafes serving liquor under excise license. Further, to ensure the safety of employees and customers, it will be mandatory for all retailers in urban areas, taverns and wholesale licensees to install fire fighting equipment. CCTV cameras will also be installed in all the above shops/godowns.