Punjab income from liquor sales on par with Haryana

Haryana is likely to be placed above Punjab in most parameters of economy vis the Annual Plan size, the gross state domestic product and the per capital income. However, when it comes to liquor sales and revenue generation from excise, Punjab is on par with Haryana.

Punjab excise and taxation commissioner A Venu Prasad told FE on Tuesday, ?Punjab is targeting to garner an excise revenue of Rs 2,000 crore for FY 2009-10. We are dot on the target,? he said.

A comparison of the excise policies approved by the two states highlight that Punjab eyes to garner an excise revenue of Rs 2,000 crore as against Rs 1,480 crore of Haryana in 2008-09. Interestingly, though the number of liquor vends has been reduced from 3,800 to 3,500 this year, Haryana expects an increase of Rs 500 crore in excise revenue during FY 2009-10. Also, sale hours in rural areas have been reduced by a hour in summer (April to October) and by two hours in winter (November to March). It is to be noted that despite economic meltdown, Haryana has a surplus of Rs 150 crore.

Another feature of excise policies of the two states was that this year liquor became dearer in both Punjab and Haryana. The Punjab government?s excise policy increased value added tax on liquor, leading to an increase in the price of country-made and Indian Made Foreign Liquor (IMFL) from April 1 onwards. The VAT on liquor had been increased from 4% to 12.5% while the minimum retail price on Punjab Medium Liquor that is country-made liquor went up by Rs 5 per bottle and that of IMFL by Rs 10 a bottle.

In Haryana the tipplers had to shed more for liquor as a bottle of beer cost Rs five more as the minimum price of a bottle of beer had been fixed as Rs 35 in the Excise Policy. Haryana hoped its Excise revenue in 2009 would grow to Rs 1,440 crore, about Rs 115 crore more than the target of the last financial year. Alongsise beer, the lovers of country liquor, too had to pay Rs five more for their favourite tipple.

Rakesh Malohtra, a leading liquor contractor said there was nothing wrong with the Excise Policies of Punjab and Haryana but the states should follow the Model Excise Policy and the recommendations of the Planning Commssion.