UP to promote shipments from distilleries, wineries

Virendra Singh Rawat

Lucknow / Jan 11, 2021

The Uttar Pradesh government is looking to promote exports from the state distilleries, wineries and breweries for the benefit of industry, traders and farmers.

To boost the production of wine, the state has exempted wine made of locally produced fruits from excise duty for a period of five years, while vintners have been allowed to set up wine taverns for the retail sale.

To encourage exports, the brand and label approval process for exports to other states and countries has been simplified in the new state excise policy approved by the Yogi Adityanath government for the coming 2020-21 financial year.

To cater the upper class segment, premium retail vends, wine tasting facilities and sale of drinking accessories have been permitted at the airports. The FL-2D license for the sale of imported liquor will be discontinued. Instead, registered customs bonds will supply imported liquor directly to wholesalers. The custom bond warehouses will pay a permit fee of Rs 300 per bulk litre on sale of imported liquor to other states.

The new policy will facilitate the ease of doing business by providing the brand registration, label approval, bar and microbrewery licenses renewal facility of up to 3 years instead of annual renewals.

Meanwhile, the state is eyeing excise revenue of Rs 34,500 crore in 2021-22, which is 20 per cent higher compared to the targetted collection of Rs 28,340 crore in the current financial year 2019-20. The UP excise collection accounts for the second highest revenue source for the state government after the commercial tax/goods and services tax (GST) department.

The new excise policy lays emphasis on promoting the ease of doing business matrix, decentralisation of approvals, simplification of processes, implementation of system of point of sale (PoS) machines in retail shops, renewal option for 2021-22 to retail liquor licensees, introduction of high quality grain extra neutral alcohol (ENA) based UP made liquor, promoting wine production etc.