Punjab cabinet approves new excise policy, targets collection of over Rs 10,000 crore

The decision was taken at a cabinet meeting chaired by Bhagwant Mann (Representative)

Chandigarh:

The Punjab Cabinet on Saturday approved the excise policy for 2024-25, which aims to generate over Rs 10,000 crore in revenue from liquor sales.

The decision was taken at a cabinet meeting chaired by Chief Minister Bhagwant Mann.

Addressing reporters after the meeting, Finance Minister Harpal Singh Cheema said the Cabinet has approved the new GST policy, the third such policy of the Aam Aadmi Party (AAP) government.

“This will bring in revenue of over Rs 10,000 crore for the first time,” Mr Cheema said.

He said that during the last Congress government, the revenue from liquor sales was only Rs 6,151 crore.

The new excise policy envisages allocation of liquor vendors through lottery, the minister said, adding that instead of 172 groups, 232 groups will be drawn this time.

“Liquor sellers will be allocated by drawing lots,” he said.

In a separate decision, the Cabinet also approved allowing colonists to pay pending external development charges (EDC) in three installments over a period of one and a half years, Mr. Cheema said.

EDC is collected by the development authority from the project sponsor at rates announced by the government from time to time.

The authority uses these fees to provide new infrastructure and enhance existing infrastructure near these projects.

An official spokesperson said in a statement that it has been decided to reschedule the payment of overdue EDCs in three six-month installments, with interest at 10% per annum.

The cabinet also agreed to extend the one-time settlement (OTS) scheme for settling tax arrears in 2023 from March 31 to June 30.

The spokesman said this was a big relief to traders in the state as the scheme launched last year had received an overwhelming response from them.

The scheme has raised Rs 475 million through 41,814 applications received from traders, as against only Rs 437 crore and Rs 493 crore raised under OTS 2021 and OTS-2 during the previous government.

The cabinet also approved the creation of 1,390 additional medical staff positions to ensure uninterrupted quality medical services to the people.

The decision was taken in the larger public interest to overcome the shortage of medical personnel in the state.

The spokesperson said the posts will be filled by Baba Farid University of Health Sciences in Faridkot, after they were taken out of the purview of the Punjab Public Service Commission (PPSC).

The cabinet also agreed to create 20 new posts, including four medical staff 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 medical services to the people in border areas.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)