Tipplers rejoice, booze to get cheaper in UP, in the new fiscal year

New year'21's new liquor policy brings good news for tipplers in Uttar Pradesh. The prices of your favourite booze are set to get cheaper as the state government has announced a cut on excise duty. But that's not all! Apart from the reduction in prices of several items, there are a lot of changes that come in with the new policy.

Along with waiving off the excise duty, the new policy will make it mandatory to obtain a license to keep liquor more than the prescribed limit at home. Besides this, the COVID-cess on wine, low alcoholic beverages and foreign liquor has also been slashed down by half, thereby reducing the cost significantly.

Uttar Pradesh's New Liquor Policy

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As per the new rules, an individual is now permitted to store up to 1.5 litres of each country-made and Indian Made Foreign Liquor (IMFL) and 4 bottles of beer. If the person wishes to store more than this prescribed limit, they have to procure a license from the state excise department. A license shall be issued for purchase, transport and possessing the stocks in excess of the permitted retail sale limit to individuals the state excise officials stated. The license fee has been marked at a cost of ₹12,000, along with a security deposit worth ₹51,000 per year, subject to the conditions prescribed.

Uttar Pradesh Government has set a target revenue of ₹ 34,500 crores in 2021-22 from the excise department against the expected revenue collection of Rs 28,340 crore in the fiscal of 2020-2021. As per an official source, while the quality and economically priced UP made liquor, manufactured with Grain ENA of 42.8% strength, would now be available to the customers in tetra packs at Rs 85 at the country liquor shops across the state. there has been no rise in the maximum retail price of country-made liquor, the source further informed. Sale of imported liquor and Indian made foreign liquor in the scotch category, with a maximum retail price of Rs 2,000 or more, will be permissible in mono-cartons.

The sale of foreign liquor in 90 ml bottles under the regular category would be permitted. Low alcohol beverages (LBA) would now be available at retail shops of foreign-made liquor, model shops, and premium retail vend besides the beer shops. Meanwhile, the excise duty on beer has been reduced and its shelf life would be nine months.

Digitisation to the victory

In order to promote the production of wine in Uttar Pradesh, wine made out of locally produced fruits shall be exempted from excise duty for a period of five years. Vintners shall be allowed the retail sale of wine. Wine taverns shall also be allowed in its premises. Alongside this, an option to renew brand registration, label approval, bar, and micro-brewery licenses up to 3 years will be made available. This will ease the operations of the business, as people won't be required to get approvals every year as before.

Due to the situation arising out of Covid-19, the period from April-2020 to June-2020 shall be excluded in determining the renewal criteria. The new policy also encompasses the total digitalisation of the excise department in 2021-22. Efforts would be made to computerise all the processes and procedures of the excise department under the Integrated Excise Supply Chain Management System (IESCMS). Under the new policy, it has been made mandatory for the retail shops to install PoS machines for selling the liquor.

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Moreover, premium retail vends shall be permitted at airports. Wine-tasting facilities and sale of drinking accessories shall be allowed at premium retail vends. Besides this, the provision that no liquor shop shall be opened within 5-km of the border of another district, without the consent of the Collectors of both the districts, has been scrapped.

Promoting the safe consumption of alcohol

The power for renewal of micro-brewery licenses shall be delegated from Excise Commissioner to District Collector who shall be authorised to amend the names of the renewed shops. A special campaign will be launched to create awareness to the public on the ill effects of drinking and responsible drinking. This drive will mainly focus on the vices of underage drinking, drink driving and responsible consumption.