Excise Policy reduces number of taxes, duties & levies

New liquor outlets to be given

Excelsior Correspondent
JAMMU, May 29: The Finance Department today issued Excise Policy 2018-19 aimed at simplification of regulatory structure by rationalizing and reducing number of taxes, duties and other levies.
The Policy will have immediate effect and remain in force till March 31, 2019. However, the State Government reserved the powers to revisit and revise the Policy at any point during the year, if emergent situation warrants so.
Simplification of the regulatory structure by rationalizing and reducing number of taxes, duties and other levies, import substitution of liquor and alcoholic beverages in the State using tariff barriers and export incentivization through progressive tax and duty structure, have been listed as major policy objectives of the new Excise Policy.
It also described maximizing revenue realization as one of the objective besides bringing about greater social consciousness about harmful effect of consumption of liquor and alcoholic beverages.
“Five licenses in ‘sale license’ category, one ‘manufacturing license’ category and one ‘social occasion permit’ category will remain in vogue,” the Policy document said.
It added that the grant of licenses for operating liquor shops at identified un-served locations will be undertaken by the Excise Department strictly in provisions of the J&K Excise Act, J&K Liquor License and Sales Rules and procedure outlined in Excise Policy for the year 2017-18. However, in case of individual applications received for grant of liquor shops license at any particular un-served area, the applications will be entertained with conditions, which have been mentioned in the Excise Policy.
“The regularization or otherwise of 61 vends involved in LPA titled Sandhya Devi v/s State of Jammu and Kashmir and others will be in accordance with the final outcome of the writ petition,” the Policy stated.
It further said that the policy in vogue for the grant of licenses for retail sale of liquor like Bar with Hotel, Bar with Banquet, Bar with Restaurant or Cinema Theatre or Dak Bungalow, Unit Run Canteen by Army Paramilitary Force, Master Canteen and Club will continue, subject to the fulfillment of requirements of the orders of the courts.
“Validity of all types of licenses will be for a period of five years. The liquor licenses will be granted to the State Subjects of Jammu and Kashmir only. Those already having any type of license under the J&K Excise Act will not be eligible for having same type of license. However, any licensee can apply for or have a license of any other type.
“New liquor outlets of all types will be at a minimum distance of 300 meters from the religious places, educational institutions, hospitals, nearest liquor shops, bars, public parks and in conformity with the provisions of `J&K Excise Act and Liquor License and Sales Rules 1984,” according to the Policy.
It said the existing Policy for issuance of licenses for distilleries, breweries and bottling plants in the State, will continue. A non-refundable sum of Rs 25 lakh will be charged for issuance of Letter of Intent (LoI) for setting up distilleries, breweries and bottling plants.
“The Maximum Retail Price (MRP) of all types of liquor including JK Special Whisky and Beer will continue to be fixed by the Excise Commissioner for 2018-19. Freight charges will be added to MRP at the rate of one per cent for Kashmir divisions, Poonch and Kishtwar districts of Jammu division and three per cent for Leh and Kargil districts,” the Policy said.
The new Excise Policy said there will be ban in import of brands having MRP of Rs 500 per bottle or below into the State. The renewal of licenses will be automatic for a period of 5 years from issue of this Policy subject to the conditions laid down by the Government.
“The process of approval of labels will be conducted in the month of March and August only,” the Policy stated. It added that up to two liters of imported duty free liquor accompanied with proper invoice will be allowed to be carried into Jammu and Kashmir by any bonafide person.
The Excise Policy stated that long term objective of the State is to eliminate or reduce the consumption of liquor primarily through educating the masses regarding harmful effect of consumption of liquor.
“Towards this end, the Department will spend money on educating people through activities like awareness campaigns, engagement with local youth and communities and drug de-addiction programmes. The Department will exhort all stakeholders, in particular all licensees, to contribute minimum of 2 per cent of their annual profit towards Corporation Social Responsibility Fund established by the Department, which will contribute a matching amount to be used for educating masses against drug addiction, reduction of instances of drunken driving, de-addiction activities and providing health support by way of providing ambulance services on the National Highway.

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