The Uttarakhand government has, for the first time, allowed the bottling of foreign liquor within the state under its new excise policy for the fiscal year 2024-25. This move is aimed at boosting excise revenue and attracting investment. A revenue target of INR 4,440 crore has been set for the financial year 2024-2025, representing an 11 percent increase over the target of INR 4,000 crore for the current financial year 2023-24.
Under the new excise policy, the hilly state has also introduced provisions for the first time for bulk license FL-2 (O) for the supply of overseas liquor. This measure aims to control the trade of overseas liquor coming through custom bond in the interest of revenue. Additionally, provisions have been made for setting up micro distillation units to encourage innovation and investment in the hilly areas of the state.
In the upcoming fiscal year, Uttarakhand aims to position itself as a leading center for the production of high-quality aromatic liquors and wines/malts akin to those from Scotland and Italy. To support local farmers engaged in agriculture and horticulture, the new excise policy permits the processing of indigenous fruits such as tangerine, malta, apple, pear, and peach for the production of country liquor in Uttarakhand.
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Under the new excise policy, the state government has outlined provisions for license renewal, including eligibility criteria. Additionally, a two-stage lottery system has been introduced to allocate liquor shops in the state. Renewal of liquor shop licenses will only be considered for holders who have cleared all past due liabilities and secured their securities. As per the new excise policy, applicants must submit their Income Tax Returns (ITR) for the past two years along with their application for liquor shop allotment in Uttarakhand. Furthermore, under this policy, an applicant can be allocated a maximum of three liquor shops in the state.
The new policy introduces provisions for the supply of spiced liquor with 36 percent v/v strength, as well as spicy and plain liquor with 25 percent v/v strength, and special grade metro liquor in country liquor shops. Additionally, the transfer of foreign/country liquor quota will now be permitted up to 10 percent of the quota surcharge. Unlike the previous year, the bar license fee in Uttarakhand is now determined based on the star category, and the new excise policy includes provisions for seasonal bar license fees. These measures have the potential to enhance tourism in Uttarakhand.
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