Punjab cabinet approves new excise policy, targets collections of over ₹10,000 crore

Punjab Chief Minister Bhagwant Mann chairs the Punjab Cabinet meeting. File image for representation. | Photo credit: ANI

The Punjab cabinet on March 9 gave the nod to the excise policy for 2024-25, which aims to generate revenue of over ₹10,000 crore from liquor sales.

A decision to this effect was taken at a cabinet meeting chaired by Chief Minister Bhagwant Mann in Chandigarh.

Speaking to reporters in Chandigarh after the meeting, Finance Minister Harpal Singh Cheema said the cabinet had approved the new excise policy – the third such policy of the Aam Aadmi Party (AAP) government.

“For the first time, more than ₹10,000 crore will be generated from this,” Mr. Cheema said.

He said that during the previous Congress regime, revenue from liquor sales was only ₹6,151 crore.

The new excise policy provides for distribution of alcohol sales through drawing lots, the minister said, adding that instead of 172 groups, 232 groups have been formed this time.

“Alcohol sales will be allocated by drawing lots,” he said.

In another decision, the cabinet also gave approval to allow colonizers to pay pending external development charges (EDC) in three installments over one and a half years, Cheema said.

EDC is collected by development authorities from project developers as per the rates notified by the government from time to time.

These fees are used by authorities to provide new infrastructure and strengthen existing infrastructure near these projects.

It was decided to reschedule the payment of EDC arrears in three half-yearly installments by imposing interest at the rate of 10 percent per annum, an official spokesperson said in a statement.

The cabinet also gave the green light to the extension of the 2023 One-Time Settlement Scheme (OTS) for the settlement of tax arrears, from March 31 to June 30.

This comes as a big relief to traders in the state as the scheme launched last year received overwhelming response from them, the spokesperson said.

The scheme has already collected ₹47.5 crore through 41,814 applications received from traders, while the collections of OTS 2021 and OTS-2 under the previous government were only ₹4.37 crore respectively. and ₹4.93 crore.

The cabinet also gave approval to the creation of 1,390 additional doctor positions, aimed at ensuring uninterrupted and quality health services to the population.

The decision was taken in the larger public interest to address the shortage of doctors in the state.

These posts will be filled by Baba Farid University of Health Sciences, Faridkot, after removing them from the purview of the Punjab Public Service Commission (PPSC), the spokesperson said.

The cabinet also gave approval to create 20 new posts, including four doctors and five nurses, for the newly upgraded urban community health center in Gurdaspur.

The state government recently upgraded the urban primary health center into a 30-bed community health center to provide quality health services to the people of the border district.

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