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In bid to raise additional revenue for state, Punjab govt imposes COVID cess on liquor

The move will help the state to mobilise additional revenue of Rs 145 crore in the current fiscal.

Published: 01st June 2020 07:11 PM  |   Last Updated: 01st June 2020 07:11 PM   |  A+A-

People carry cardboard boxes to buy alcohol in bulk.

People carry cardboard boxes to buy alcohol in bulk. (Photo | Shekhar Yadav, EPS)

By PTI

CHANDIGARH: Liquor is going to cost more in Punjab as the state government on Monday imposed COVID cess on the sale of alcohol.

The Punjab government has raised additional excise duty and additional assessed fee on liquor in the range of Rs 2 to Rs 50 depending upon the type of liquor.

The move will help the state to mobilise additional revenue of Rs 145 crore in the current fiscal.

"Faced with huge revenue losses resulting from the coronavirus pandemic and the prolonged lockdown in the state, Punjab Chief Minister Amarinder Singh gave the go-ahead to the imposition of Covid Cess on liquor with effect from June 1," an official statement said.

The state is facing a revenue shortfall of Rs 26,000 crore, which is 30 per cent of the total budget revenue estimates, for the financial year 2020-21, necessitating some tough measures to generate additional revenue, the chief minister said.

He accepted the recommendation of the Group of Ministers, which was constituted on May 12, to levy additional excise duty and additional assessed fee on liquor during the current financial year.

The proceeds of the additional levy shall be utilised entirely for COVID19-related expenditure, Singh said.

He directed the department of excise and taxation to charge the cess in the current year, at the time of issuance of permits for transportation of liquor from L-1/L-13 (wholesale licenses).

In line with GoM's recommendations, the department of excise and taxation has decided to impose additional assessed fee on imported foreign liquor and additional excise duty on other types of liquor.

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