Excise duty on liquor in Puducherry extended till January 31

Though Covid-19 cases have come down, the government wants the continuation of SED, perhaps to keep tourist inflow at a minimum.
Representational Image
Representational Image

PUDUCHERRY: Liquor prices will continue to remain high in the Union Territory, with the Excise Department extending the Special Excise Duty (SED) till January 31. This comes following expiry of the previous notification by November, issued with respect to the levy of duty in all the four regions of the UT. Though Covid-19 cases have come down, the government wants the continuation of SED, perhaps to keep tourist inflow at a minimum.

In a notification issued on November 30, Deputy Commissioner (Excise) Shashvat Saurah said following the order of Lt. Governor Kiran Bedi, the validity of the notification has been extended to January 31.
Earlier, the administration had decided to reduce SED on liquor from December 1 and sent a file to Bedi for approval.

The shops selling liquor, arrack and toddy were closed since March. After the Centre announced relaxation of the lockdown, Bedi had given the nod to reopen the shops, but only after imposing SED to prevent people from Tamil Nadu to come to buy liquor.

Accordingly, 25 to over 100 per cent SED was imposed on IMFL and 20 per cent on arrack, but nothing on toddy.  Around 920 brands of liquor are being sold in Puducherry, of which 154 are being sold both in Puducherry and Tamil Nadu. Prices of these 154 brands in the UT was brought on a par with that in TN, which enhanced the prices to double and triple leading to a slump in sale. Initially, the SED was imposed from May to August, and subsequently  extended till November 30.

With that period coming to an end, Chief Minister V Narayanasmay held a meeting with his Cabinet colleagues and senior officials, including the Chief Secretary on Sunday. Since Excise is  the second largest revenue generator for the government, it was decided not to withdraw the duty completely as there could be a slump in revenue.

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