UP Permits to Clear Leftover Liquor Stock after Lockdown

The UP’s excise department has taken cognisance of pending old liquor stocks with liquor shops, bars and clubs in the state due to unprecedented lockdown in the view of Covid-19 in the state and has provided concessions in the excise policy.

Here it deserves a mention that leftover stock of alcoholic beverages in the state leads to huge losses for the excise department and lockdown accounted for loss of about Rs 500 crore to the exchequer due to this.

12,467 shops selling country-made liquor in the state of UP are sitting on more than 7.36 lakh cartons valued at Rs 215 crore. Distilleries of country liquor in the state of UP have about 4.5 lakh cartons.

Under the new arrangement, the department  has allowed shops  to sell their existing stock at 2019-20 prices without paying any rollover fee for seven days bracket  once the lockdown is lifted. However, 15 days grace period is being allowed for bars and clubs who have renewed their licenses to sell their old stock at the 2019-20 rates before they declare the remaining stock and roll it over to the next financial year when additional levies become applicable.  If stock is not cleared in the given period then remaining stock will be dealt with applicable procedures under the state’s policy.

Necessary order to this effect was issued by the state’s excise department’s Principal Secretary, Sanjay Bhoosreddy.  The rollover fee would be applicable for any sales beyond 31 st March, when the fiscal year ends, says an order.

The UP’s excise department also provided a seven-day window to pay licence fees in banks after the lockdown is lifted and no penalty would be levied for inability to lift the minimum guaranteed quantity of liquor for both March and April 2020.

The UP excise department’s new move would bring some relief for liquor outlets and consumers in UP, as both are in the receiving end due to this Covid-19 induced lockdown.