UP Govt approves New Excise Policy, revenue target 34,500 crore

Lucknow, 09 January (HS) :     The Yogi Government of Uttar Pradesh on Saturday approved new Excise Policy for 2021-22. The target of revenue is fixed Rs 34,500 Crore for 2021-22 as against the expected revenue of Rs.28,340 Crore in 2020-21.

A release issued by the revenue department informed that the new Excise policy was approved by the Cabinet by Circulation. According to new policy renewal of Country Liquor, Foreign Liquor, Beer, Bhang retail shops and Model Shops permitted for 2021-22. Due to situation arising out of Covid-19, the period April 2020 to June 2020 shall be excluded in determining the renewal criteria.

All retail shops (except Beer) which will lift the prescribed quota during July 2020 to March 2021 shall be eligible for renewal. The retail outlets of beer will be exempted from the requirement of previous year’s equivalent lifting in the third and fourth quarters of 2020-21. All Beer shops shall be eligible for renewal.

The release added that the excise commissioner will be authorised to create new shops equivalent to 2% of the total number of shops settled in 2020-21.   Non-renewed and new shops shall be settled through e-lottery or e-tender. Annual license fees of Country liquor, Foreign liquor retail shops and Model shops for 2021-22 increased by 7.5 percent. No increase in license fee of Beer retail shops.

To provide good quality liquor at economic prices, U.P. Made Liquor (in Tetra-pack and of 42.8% strength only) made from Grain ENA, shall be sold at an MRP of Rs.85/- through Country liquor shops. Integrated Supply Chain Management System (IESCMS) shall be implemented by computerizing the various processes of the department. The system of sale of liquor in retail shops using PoS machines shall be implemented in 2021-22.

To promote production of wine within the state, Wine made out of locally produced fruits shall be exempted from excise duty for a period of five years. Vintners shall be allowed retail sale of wine. Wine Tavern shall also be allowed in its premises.

The sale of Low Alcoholic Beverages (L.A.B) shall be allowed in Foreign liquor retail shops, Model shops and Premium retail vends in addition to beer shops. The excise duty on Beer is reduced and the shelf life of beer will be 9 months. Premium retail vends shall be permitted at Airports. Wine tasting facility and sale of drinking accessories shall be allowed at premium retail vends.

To promote ease of doing business, brand registration, label approval, bar and micro-brewery licenses will have the option to be renewed up to three  years instead of requiring approvals every year. Advance storage of foreign liquor, beer and wine for the year 2021-22 will be allowed from 15 February 2021. Also, to ensure availability of liquor during the beginning of the year, rollover process of residual stock on 31st March for next year is simplified and there will be no roll over fee for carrying forward of these stocks.  Keeping in view of the festival of Holi, the renewed country liquor retail shops will be allowed sale of residual stock till 07.04.2021.

To encourage exports from the state, brand and label approval process for exports to other states and countries simplified. Keeping in view the complex process of trade mark registration and the time taken, brand registration will be permissible on submission of proof of filing of application for trademark registration.

            The release further informed that a special campaign will be launched to create awareness to the public on the ill effects of drinking and responsible drinking. The campaign will mainly focus on Under Age Drinking, Drunken Driving and Responsible Consumption, it added.