Excise policy of Chandigarh Admn hailed by brewers

The brewery industry is upbeat about the new excise policy announced by the Chandigarh Administration.

Sundeep Kumar, director of All-India Brewers' Association said that the sale of beer accounted for 4 per cent of the toal liquor market.

"Beer contains only 5-7 per cent of the alcohol and worldwide, less tax is levied on beer than whisky and wine. It is the opposite in India and is resposible for the small size of business," he added.

He referred to the recommendation of the model draft policy of the Ministry of Food and Processing and Industries to delink beer from hard spirits to wean away people from hard drinks to drinks with low alcohol content.

Kumar, who is also one of the directors of SAB Miller, said if the tax structure was rationalised, the cost of a bottle of beer could be halved.

The downward revision of licence fee from Rs 50,000 to Rs 10,000 per month per outlet is expected to expand the market, he added.

The amendments introduced in the Excise policy last year by removing the monopoly in retail distribution in Chandigarh increased sales by 300-400 per cent, Kumar said.

Replacement of the auction system with the licensing system also boosted sales. The licensing system has ensured an increase in the number of retailers and more competition.

Haryana introduced its Excise policy last month without any major changes except that country liquor shops can also sell beer.

Punjab is yet to announce its new Excise policy.

Kumar said the reduction of duty would not affect the revenue to the state government because the increase in the volume would compensate for any loss of revenue.