Chandigarh retains liquor prices, introduces key reforms

The Chandigarh Administration has announced its Excise Policy for the 2025-26 fiscal year, keeping liquor prices unchanged while introducing key reforms aimed at enhancing transparency, regulatory compliance, and consumer convenience. The policy will come into effect from April 1, 2025.

A significant change under the new policy allows bar licensees (L-3/L-4/L-5) to procure liquor directly from retail vends (L-2/L-14A) in Chandigarh, provided they pay the necessary excise duties. Previously, they were restricted to purchasing from wholesale suppliers holding an L-1 licence.

Officials told the media that retail liquor vends will continue to be allotted through an e-tendering system, with the e-auction set to commence on March 13, 2025. A total of 97 liquor vends will be auctioned, with each licensing unit comprising one retail vend. To participate, bidders must pay a fee of ₹2 lakh per auction, and a single licensee will now be permitted to operate up to 10 vends.

Moreover, the Chandigarh Excise and Taxation Department has reduced its revenue target from last year’s ₹1,000 crore to ₹800 crore, following a shortfall in revenue generation, which stood at ₹743 crore in 2024-25. Notably, 12 liquor vends remained unsold last year, reflecting a similar trend from 2023-24, when 18 vends failed to attract buyers even after 20 rounds of auctions. To address this issue, the administration has reiterated that if vends remain unsold, the Chandigarh Industrial and Tourism Development Corporation Ltd. (CITCO) will step in to operate them.

To improve efficiency, an auto-approval system has been introduced for brand and label registrations if they were previously approved. Additionally, inter-vend stock transfers will now be allowed between two retail vends owned by the same licensee, subject to a reasonable transfer fee.

While the quota for Indian Made Foreign Liquor (IMFL) remains unchanged, the quota for Country Liquor and Imported Foreign Liquor (BIO) has been slightly increased from ₹18 lakh to ₹20 lakh proof litres to meet growing demand. Additionally, export fees have been raised.

The policy also enforces stricter penalties on retailers selling liquor below the minimum retail price. Any retail vendor found in violation will face a three-day closure for each offence, with repeated breaches leading to non-renewal of the licence.

The department will also mandate a “Track and Trace” system to monitor the manufacturing, transport, distribution, and consumption of liquor in Chandigarh, aiming to prevent illegal liquor sales. Each bottle will have a barcode and batch number providing details about the manufacturer, date of production, and other relevant information. Additionally, all vehicles transporting liquor for import or export will now require GPS tracking for real-time monitoring.

A new provision has been introduced, stating that individuals convicted of a criminal offence will not be granted a liquor licence or allowed to participate in auctions. Moreover, L-1F licence holders (importers of foreign liquor) will now be required to submit a valid Import-Export Code (IEC) for the policy year, and all inward and outward supplies from custom-bonded warehouses must be registered on the excise portal. Additionally, L-1F premises (godowns) must be located at least 100 metres away from their respective bonded warehouses, which must now be situated exclusively within Chandigarh.

Microbreweries and BWH-2 (Bonded Warehouses) will be required to conduct quarterly liquor quality tests at a government-approved laboratory, ensuring adherence to safety and quality standards.

The administration has retained the existing cow cess rates, offering no relief to the cash-strapped Municipal Corporation (MC). The cess remains at ₹0.50 per 750 ml bottle of country liquor, ₹0.50 per 650 ml bottle of beer, and ₹1 per 750 ml/700 ml bottle of whisky. Wholesale licensees must continue to deposit these amounts in the dedicated MC bank account. These rates have remained unchanged since their introduction in 2020.

With these new measures, the Chandigarh Administration aims to balance consumer interests, regulatory compliance, and revenue generation while ensuring a more transparent and efficient excise system.