J&K Government withdraws corona tax on liquor

The Jammu and Kashmir government on 15th September 2020 withdrew the additional excise duty of 50 percent levied on liquor after the outbreak of COVID-19

Excise Commissioner Rajesh Kumar Shavan said the new policy for the first time provides for reservation of 12 percent to six categories of people, including ex-servicemen, those belonging weaker sections

“The additional 50 percent excise duty on liquor (which was levied in May), commonly known as corona tax, has been withdrawn from today after the implementation of the new excise policy,” Shavan told reporters.

He highlighted various features of the policy and said it focused on transparency in the liquor trade, besides boosting revenues through rationalization of duties.

According to the notification, 12 percent of the total liquor vends to be auctioned at any time in the future are proposed to be earmarked or set aside for these categories. Within the overall ceiling of 12 percent quota, each of these six categories may be assigned two percent of actionable liquor vends.

To encourage unemployed youths, the excise commissioner said special concession on license fee would be given to those who wish to open bars and restaurants at tourist places, including Gulmarg, Pahalgam, and Sonmarg, and areas falling under the jurisdiction of tourism development authorities like Mansar and Kishtwar.

“There will be transparency in issuance of licenses,” he said, adding there is a provision in the new policy to open new outlets in unserved or under-served areas in the UT.

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