Punjab CM gives nod to Covid cess on liquor for FY 2020-21

Punjab Captain Amarinder Singh | COVID 19 Cess on liquor | Additional Assessed Fee

Punjab Chief Minister Captain Amarinder Singh on Monday gave nod to the imposition of Covid Cess on liquor with effect from June 1. The development will help the state mop an additional revenue of Rs 145 crore in the current fiscal.

 The Chief Minister said that the state is facing a revenue shortfall of Rs. 26000 crore, which is 30 percent of the total budget revenue estimates, for FY 2020-21, necessitating some tough measures to generate additional revenue. He accepted the recommendation of the Group of Ministers, which was constituted on May 12 to examine the matter, to levy Addl. Excise Duty and Addl. Assessed Fee on liquor during the current financial year.

The proceeds of the additional levy shall be utilized for COVID related expenditure, the Chief Minister said. He also 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).

Captain Amarinder Singh had earlier asked the Group of Ministers (GoM), comprising the Finance Minister, the Education Minister, the Housing & Urban Development Minister and the Forests & Wildlife Minister, to examine the proposal regarding levy of Special Cess/COVID Cess on the sale of liquor, to partially recoup some of the revenue losses amid coronavirus crisis.

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In line with recommendations of Group of Ministers, the Department of Excise & Taxation has decided to impose an Additional Assessed Fee on imported foreign liquor and imported beer, and Additional Excise Duty on other types of liquor, as per the details shared below.

-PTC News