After bringing new excise policy for the remainder of 2020-2021 financial year, the Jammu and Kashmir administration withdrew the additional excise duty of 50 per cent levied on liquor.
“The additional 50 per cent excise duty on liquor (which was levied in May), commonly known as corona tax, has been withdrawn from today after the implementation of the new excise policy,” Excise Commissioner Rajesh Kumar Shavan said.
Issuing a statement, Shavan said the new policy for the first time provides for reservation of 12 per cent to six categories of people, including ex-servicemen, those belonging weaker sections and unemployed youths, in opening bars and restaurants at tourist destinations across the Union Territory.
Shavan further highlighted various features of the policy and said it focused on transparency in the liquor trade, besides boosting revenues through rationalization of duties.
Talking about the objectives of the policy, the government notification among other things said it was meant to rationalise the number of taxes, duties and other levies to optimize revenues for common good and check bootlegging or smuggling of bottled in origin (BIO) brands in the UT from outside.
It said the objective is also to provide choice of brands and adequate places for consumption to its consumers and a level-playing field to those in this business.
As per the notification, the bars located at tourist places of Sonamarg, Gulmarg, Pahalgam and areas falling under various Tourism Development Authorities shall pay half the amount of prescribed annual license fee subject to review on yearly basis by the authority concerned.