September 27, 2023

Chandigarh Headline


New excise policy of Chandigarh: Now, restaurants, bars and hotels in Chandigarh can stay open till 3am

3 min read

Chandigarh, March 5, 2022: Governor Punjab and Administrator U.T., Chandigarh Banwarilal Purohit, after a detailed presentation by the Adviser to the Administrator, Finance Secretary-cum-Secretary (E&T), Deputy Commissioner-cum-Excise & Taxation Commissioner and other Senior Officers of the Excise Department, has approved new Excise Policy for the year 2022-23. The new Excise Policy aims at balancing the aspirations of the consumers, manufacturers, wholesalers/retailers and the Government. Some of the salient features of this Policy are:

  1. 65 degree proof of Country Liquor has been introduced apart from the existing 50 degree proof and 60 degree proof. This will increase choice for the consumers and make better quality of Country Liquor available.
  2. To curb spurious liquor, pilfer proof seals made mandatory in Country Liquor bottles.
  3. Only 50% of the basic quota of Country Liquor will be distributed equally amongst the Bottling Plants and 50% of the basic quota will be kept open. Further, additional quota will also be kept open. This will increase choice to the Retail vends to obtain supplies as per their choice of bottling plant and brand.
  4. Overall basic quota has been reasonably increased by 13.4% as per consultation with stakeholders.
  5. Imported RTD (Ready to Drink) has been allowed for sale in U.T. Chandigarh.
  6. The allotment of Retail Vends of Liquor will be made through e-tendering system for more transparency.
  7. Online facility for issuance of permit/passes and applying various Excise Licenses has been introduced to facilitate stakeholders.
  8. EMD (Earnest Money Deposit) has been reduced for better participation in the bids.
  9. Mandatory computerized billing to be introduced by 1st October, 2022 and penalty of Rs. 5000/- introduced on non-issuance of receipt.
  10. Covid rebate (i.e. Pro-rata reversal of license fees) as given in the last year to continue to all retail vends, bars, restaurants, hotels, clubs etc.
  11. Facility of 2 hour extension in closure timings (i.e. up to 3 AM) given to Restaurants / Bars / Hotels on payment of additional license fees.
  12. Round the clock service of liquor also allowed in 3 Star & 4 Star Hotels on payment of additional license fees.
  13. Track & Trace system to be introduced during this policy year to curb illegal sale of liquor.
  14. Stringent penalty for non-maintenance of Minimum Retail Sale Price by liquor vends introduced. Vends to be sealed for 3 days on first violation itself.
  15. CCTV cameras to be introduced in all retail vends by 1st May, 2022.
  16. Penalty of Rs. 50,000/- introduced on sale of expired liquor by retail vends.
  17. E-Vehicle Cess introduced in pursuance of E-Vehicle Policy of Chandigarh Administration. The Cess will be levied per Bottle varying from Rs. 2 to Rs. 40.
  18. To promote low alcoholic drinks, license fees and duties have not been increased on Beer, Wine, RTD (Ready to Drink) etc.
  19. Considering the request of Hotels & Restaurant Associations and to give support to them, their license fee has been kept the same.
  20. To ensure availability of more variety and brands, label/brand registration fees has been kept the same.
  21. Excise Duties have been increased by approximately 5.5%.
  22. Minimum Retail Sale Price has been reasonably increased in the range of 5% to 10% considering input costs and taxes.

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