Punjab cabinet approves new excise policy, aims at over Rs 10,000-Cr collections

The Punjab cabinet gave its nod on Saturday to the excise policy for 2024-25, which is aimed at garnering revenue to the tune of more than Rs 10,000 crore from the sale of liquor.

A decision to this effect 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 excise policy -- the third such policy of the Aam Aadmi Party (AAP) government.

"For the first time, more than Rs 10,000 crore will be generated from it," Cheema said.

He said during the previous Congress regime, the revenue from liquor sale was merely Rs 6,151 crore.

The new excise policy envisages allotment of liquor vends through a draw of lots, the minister said, adding that instead of 172 groups, 232 groups have been formed this time.

"Liquor vends will be allotted through a draw of lots," he said.

In another decision, the cabinet also gave its approval for allowing colonisers to pay the pending external development charges (EDC) in three instalments in a year and a half, Cheema said.

The EDC is collected by development authorities from the promoters of projects in accordance with the rates notified by the government from time to time.

These charges are utilised by the authorities to provide new infrastructure and strengthen the existing infrastructure in the vicinity of these projects.