The Punjab government said the extra amount collected will be spent on COVID-19-related expenditure.
Facing huge revenue losses, the Punjab government has decided to increase liquor prices in the state by levying additional excise duty and assessed fee in lieu of the COVID cess on alcohol with effect from June 1.
Alcohol will now be dearer by Rs 2 to Rs 50 in Punjab, depending on the type of liquor sold.The Punjab government said the extra amount collected will be spent on COVID-19-related expenditure.
We've decided to levy additional excise duty&assessed fee in lieu of COVID Cess on liquor with effect from 1June. These would range from Rs2 to Rs 50 depending on type& size of the item. The amount collected will be utilised for #COVID19 related expenditure: Punjab CM
(file pic) pic.twitter.com/6Sfnqx9COq
— ANI (@ANI) June 1, 2020
Punjab government announced the liquor cess almost a month after alcohol sale was permitted in the state. Haryana, Delhi, and Puducherry governments had also earlier announced similar cess on liquor.
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, Chief Minister Amarinder Singh said.
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 L-1/L-13 (wholesale licenses).To follow our full coverage on coronavirus, click here