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The Jammu and Kashmir government has decided to withdraw 50 percent corona tax that was charged on liquor in the Union Territory.

The Jammu and Kashmir administration on Tuesday withdrew the additional excise duty of 50 percent levied on liquor, it has been levying since the pandemic outbreak and has come up with new excise policy for the remainder of the financial year 2020-21.

Excise Minister Rajesh Kumar Shavan said that the new policy for the first time provides for reservation of 12 percent to 6 categories of people including ex-servicemen, those belonging to weaker sections and unemployed youth in opening bars and restaurants across the Union Territory at the tourist destinations.

As a part of the new excise policy, the additional 50 percent tax on liquor, commonly known as corona tax has been revoked.

He highlighted various features of this policy and said it focussed on transparency in the liquor trade besides boosting revenue through rationalization of duties.

In the policy objectives, the notification from the government mentioned that the policy was meant to rationalize the number of taxes to optimize revenues for human good.

It said that the objective is to provide a choice of brands and adequate places for consumption to its consumers and a level-playing field to those in this business.

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 6 categories may be assigned two percent of actionable liquor vends.

To encourage unemployed youth, the excise commissioner said that special concession on the license fee would be given to those who wish to open bars and restaurants at the tourist places including areas like Gulmarg, Pahalgam and Sanmarg.

Moreover, as per the notification, the areas in the Union Territory that come under the Tourism development authorities shall pay only half the amount of prescribed annual license fee on the yearly basis as charged by the authorities concerned.

Shavan also said that the paramilitary forces would now get liquor at much cheap prices as the excise duty and import duty on the Canteen Stores Department would be 25 percent less than that of civil for all types of liquor.

There are at least 600 companies supplying liquor to the paramilitary forces and 80 percent of the consignments come from outside of the Union territory.

Shavan also mentioned that there were some high and premier brands which were hitherto not available to the consumers in Jammu and Kashmir.

However, the government is now encouraging import of these brands and has decided to levy 20 percent tax instead of 35 percent that is usually levied on such brands.

By Gayatri Yellayi