Chandigarh Excise Dept Faces Revenue Setback, Initiates Preparation for Excise Policy 2024-25

Loss of Rs 150 Crore in Current Fiscal Year Prompts Department to Seek Stakeholder Input; Imbalanced Tax Structure Blamed by Liquor Contractors


The UT Excise and Taxation Department have commenced the groundwork for formulating the Excise Policy 2024-25, scheduled for implementation on April 1. Seeking recommendations from stakeholders, the department has set a submission deadline of November 30.

This fiscal year has marked a significant setback for the department, experiencing a loss of nearly Rs 150 crore. Surprisingly, 18 out of the total 95 liquor vends found no takers, even after conducting 20 e-auctions in the past nine months. Consequently, the remaining liquor quota was redistributed among the existing vend units.

Projections for the current fiscal year anticipated a revenue of Rs 830 crore, but only around Rs 600 crore has been realized thus far. The fees, ranging from Rs 3 crore to Rs 15 crore based on location, contribute to this revenue.

Liquor contractors attribute the revenue shortfall to an imbalanced tax structure, drawing comparisons to the neighboring state of Punjab.