New Excise Policy to facilitate achievement of financial targets: Excise Commissioner

Jammu and Kashmir Excise Commissioner R K Shavan today said the new Excise Policy introduced by the UT Government would help in achieving the financial targets despite COVID-19 challenges.

Addressing a press Conference here, Shavan said the new policy aims at providing choice of brands to consumers and level playing field to those in the trade adding that 50% Additional Excise Retail Duty (ARD) commonly known as “Corona Tax” has been waived off.

The Government of UT of J&K vide notification SO 275 dated 31.08.2020 issued the Excise Policy for the year 2020-21 effective from 1st September, 2020 till 31st March, 2020.  In supersession of earlier Excise Policy, the new Excise Policy aims at rationalizing the tax structure to optimise revenues.

“To generate additional revenue for common good, bottling fee @ Rs. 10-12 per bottle has been introduced on bottling of all kind of liquor.  Besides, the existing Excise Duties have been marginally increased.  To bring about discipline and effective enforcement, fixed License fee has been introduced for all kind of licensees at different rates,” he said. 

The Policy, he said, provides for grant of new licenses (Wine Shops) in un-served and under-served areas through e-tendering process in a secured and transparent manner. 

He said provision for reservation to Ex-servicemen, Specially-abled SC/ST/OBC and Economically Weaker Sections @ 2% each has been made while granting new license fee.

Giving details, he said that the new Start-ups established by availing loans under any of self-employment scheme of the Government will get concession on up-front fee.  “Such startups have to pay Rs 5 lakh instead of Rs 7 Lakh,” he said.

“The Bars at the tourist locations and areas falling under various Tourism Development Authorities shall have to pay half of amount prescribed under annual license fee.  For commercial properties meant for tourist accommodation located in the water bodies in the tourist areas permits shall be issued for serving liquor by charging Rs 1 lakh as annual fee,” he added.

He said the Banquet/Party halls, which intend to serve liquor shall get registered with the Department by paying annual registration fee of Rs 50,000.

“To curb bootlegging/smuggling of Super Deluxe/Bottled in Origin (BIO) price correction has been made by imposing additional assessment duty @ 20% instead of 40%, ” he said.

It is pertinent to mention that the New Policy has authorised the Excise Commissioner to scrutinize all the violations/frauds committed in grant and renewal of licenses in past. 

It has further been classified that the validity of renewal of license shall be for one year as per the rules and not for five years as in earlier Policy.

The concession of 25% to defence/paramilitary forces on import and export duty has also been allowed.