Mumbai: Government of Punjab on Monday raised additional excise duty and additional assessed fee on liquor from Rs 2 to Rs 50 depending on the type of liquor.
This move is intended to help the state to mobilise additional revenue of Rs 145 crore in the current financial year.
“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.
Captain Amarinder Singh Chief Minister of Punjab said that the state is facing a revenue shortfall of Rs 26,000 crore, which is 30 per cent of the total budget revenue estimates, for the financial year 2020-21, necessitating some tough measures to generate additional revenue.
He was recommended to levy additional excise duty and additional assessed fee on liquor by Group of Ministers on May 12.
Singh said that the proceeds of the additional levy will be utilised entirely for COVID19 related expenditure.
He 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 wholesale licenses.
Before Punjab, 11 states across the country including Delhi, Assam, Meghalaya and Uttar Pradesh have imposed COVID cess on Liquor.