The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, has taken a significant step forward in the state’s financial strategy with the approval of the Excise Policy for the fiscal year 2021-22. This policy comes at a critical time, as it was sanctioned shortly after a tragic incident in Bulandshahr district, where individuals suffered and some lost their lives due to the consumption of illicit liquor. The new policy is not only a response to the need for stricter regulations but also a move anticipated to substantially enhance the state’s revenue.
Introduction to the Excise Policy 2021-22
The Excise Policy 2021-22 has been designed to revamp the existing structure and introduce measures that could help in curbing the sale and distribution of illegal liquor. This comprehensive policy outlines several key changes and initiatives that aim to regulate the alcohol market more effectively while promoting safer consumption practices. The Uttar Pradesh Cabinet believes that these changes will lead to an increase in the state’s revenue, projecting an additional Rs.6,000 crore during the fiscal year.
Renewal of Liquor Licenses
One of the central aspects of the new policy is the provision for the renewal of licenses across various categories of alcoholic beverages. This includes country liquor, foreign liquor, beer, and bhang retail shops, as well as model shops for the year 2021-22. By allowing these renewals, the state government ensures a continued stream of revenue from these establishments while also keeping a tighter leash on the operations to prevent any illegal activities.
Addressing the Issue of Spurious Liquor
The approval of the new policy comes in the wake of a serious incident involving spurious liquor in the Bulandshahr district. The consumption of this illicit alcohol resulted in deaths and hospitalizations, highlighting the dangers posed by unregulated liquor distribution. The Excise Policy 2021-22 aims to tackle this problem head-on by implementing stricter controls and oversight over the production and sale of alcoholic beverages in the state.
Incentives for Local Produce
An innovative inclusion in the policy is the exemption of excise duty on wines that are manufactured using fruits locally produced within the state. This move is expected to encourage local producers and fruit farmers, potentially leading to an increase in employment and economic activity in the agricultural sector. It also positions Uttar Pradesh as a supporter of local businesses and sustainable practices, aligning with broader economic development goals.
Expected Revenue Boost
The financial implications of the Excise Policy 2021-22 are significant. The government’s projection of a Rs.6,000 crore increase in revenue is a testament to the potential impact of the revised excise structure. By streamlining the licensing process and incentivizing the use of local produce, the policy is set to create a more efficient and profitable system. This revenue is crucial for the state’s development projects and public welfare initiatives.
Enhanced Regulatory Measures
To ensure the effectiveness of the Excise Policy 2021-22, the Uttar Pradesh government plans to implement enhanced regulatory measures. These include stricter monitoring of the production, transportation, and sale of alcoholic beverages. The aim is to minimize the risk of illegal liquor entering the market and to safeguard citizens from the health hazards associated with consuming such products.
The introduction of the Excise Policy 2021-22 by the Uttar Pradesh Cabinet marks a strategic move towards better governance in the alcohol sector. By focusing on revenue generation, safety, and support for local produce, the policy sets a multifaceted approach to address the challenges faced by the state in regulating the liquor industry. With proper execution, this policy has the potential to bring about positive economic and social outcomes for Uttar Pradesh.