Booze to get costlier

CHANDIGARH: Liquor is expected to get costlier by 15-20% in the city from April 1 as UT excise and taxation department has recommended increasing the annual license fee from Rs 27.50 lakh to Rs 30 lakh from the next financial year. Excise duty is also likely to be raised.
A senior excise and taxation official said a final decision in this regard will be taken by the UT administrator in a day or two.The step is on the lines of increased excise duty in Punjab and is expected to curb liquor smuggling out of the city.
Incidentally, in the last financial year, the excise and taxation department had increased the license fee from Rs 25 lakh to Rs 27.50 lakh. Then, VAT on liquor was also hiked to 12.5 % from the earlier 4% to bring it at par with Punjab. Excise duty was also increased from 18.25% to 23.25% with an additional increase of nearly 25%. The rates of all liquor brands had shot up considerably due to all these hikes in the last financial policy.
According to local liquor vendor Madan Arora, ''The proposed hike in license fee and excise duty is definitely going to increase the rates of all brands of liquor in the city. The burden of duties imposed by the excise department will be shifted to the consumers by the vendors.
Meanwhile, UT finance secretary VK Singh said excise policy for the financial year 2011-2012 would be declared in a couple of days.