Punjab Govt to levy Covid-19 tax ranging from Rs 2 to Rs 50 on liquor sale

On Monday, the Punjab government imposed COVID cess on the sale of alcohol as a result of which liquor is going to cost more in the state.

On liquor, the Punjab government has levied additional excise duty and additional assessed fee in the range of Rs 2 to Rs 50 depending upon the type of liquor.

The move will aid the state to mobilise auxiliary revenue of Rs 145 crore in the present 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 encountering a revenue deficit of Rs 26,000 crore, which is 30 per cent of the total budget revenue estimates, for the financial year 2020-21, entailing some tough measures to generate additional revenue, the chief minister said.

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

Singh stated that the proceeds of the additional levy shall be utilised wholly for coronavirus related expenditure.

He instructed 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).

The department of excise and taxation has decided in accordance with GoM”s recommendations, to impose an additional assessed fee on imported foreign liquor and additional excise duty on other types of liquor.