By Avinash Prabhakar New Delhi, Sep 2 : As the nation’s capital returned on Thursday to the previous excise policy the liquor industry seems be more concerned about the absence of understanding of the quantity left at the L1 licenses for liquor after the transition of the policy.
The stock that was not sold after the city was able to step in to the new policy of excise in November 2021 hasn’t yet been solved, and the changeover policy has been incorporated in the inventory which has created a problem for the sector.
“Industry is extremely concerned about the lack of information regarding the stocks that remain at L1 depots resulting from and during the two subsequent policy changes.It is important to remember that prior to the 16th of November 2021 under the previous policy the excise duty was refunded in the advance by businesses when they brought stocks to depots at L1.Responding to the demand of the Delhi the government to make sure that there is no stock loss during change in November, firms bought enough stock after paying excise duties,” Confederation of Indian Alcoholic Beverage Companies (CIABC) Director General Vinod Giri said to IANS.
But, in the new policy that came into effect after November 16th, 2021, excise duty was included in the retail license fees, so businesses had to bring in new stock without paying duty.
At the request of the industry, the government allowed the surplus stocks to be transferred to L1s as per the new rules however, they did not give permission to sell the stock, Giri said.
“That stock is lying in the market, unredeemed.
Now with returning to the old policies with starting on September 1, companies will must take in the stock following the payment of excise duty.They now have stock that was introduced in between the 16th of November to August 15 without having to pay excise duty.
In the end, L1s of companies are being stowed with surplus stock from two different transitions with no clear idea of about what they should do with it,” CIABC Director General said to IANS.
He stated that there isn’t any clarity or guidance from the government on the issue.
“We insist that the government address the issue with the issue on a priority,” Giri added.
In relation to the new policy that came into effect this day, he pointed out that numerous brands are being supplied to and sold in retail stores.
However, customers may notice some of the most popular products, particularly imported ones, not on shelves because they are in the process of being processed.We expect that availability to begin slowing down in the next couple of weeks according to the CIABC Director General said.
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