Chandigarh, Dec 3: As Chandigarh begins consultations for its Excise Policy 2026–27, liquor contractors say they are suffering steep financial losses even as the UT reports a ₹100-crore jump in excise revenue this year. Officials confirmed that 10 to 12 liquor vends are being sealed each month for non-payment of licence fees, reflecting the strain on contractors.
The excise and taxation department has invited suggestions for the new policy until December 30, focusing on revenue maximisation and ease of doing business. Proposed reforms include digitised quota conversions, stronger Trace and Track mechanisms, and changes to financial norms such as advance payments and bank guarantees. Stakeholders are also seeking duty and VAT rationalisation with Punjab and extended sale hours. The new policy will come into effect on April 1, 2026.
Contractors argue that the quotas fixed for this year are unrealistic. They point to a 20-lakh proof litre quota for country liquor, 8 lakh proof litres for foreign liquor and more than 1.17 crore proof litres for IMFL. They say the pricing advantage that once drew customers to Chandigarh has also eroded. Prices, they claim, now match those in Mohali and Panchkula and are sometimes lower in border pockets.
Licence fees vary from ₹2 crore to ₹13 crore, depending on location. Contractors pay 10% at auction and the remainder in nine instalments due by December 31.
Darshan Singh Kler, president of the Wine Contractors’ Association, said the business has become unviable. “We are running into losses because the rates are the same as Mohali and Panchkula, and in several border areas the prices there are even lower,” he said. “A single group bidding the highest amounts during auctions has disrupted the market. Most of the sealed vends belong to that group.”
He added that contractors expect “structural reforms, rationalised quotas and competitive pricing” in the upcoming policy to prevent recurring closures.
A senior excise official, however, said the UT had collected ₹693 crore in revenue up to November 30, compared with ₹579 crore during the same period last year—a 19.69% increase. Sixteen vends are currently sealed for non-payment, he said.
Despite good collections this year, participation in auctions has remained uneven. Of the 97 vends auctioned in March, 92 were sold. The UT had earlier cut its revenue target from ₹1,000 crore to ₹800 crore for 2025–26 after collecting only ₹743 crore in 2024–25. Under the current policy, CITCO was meant to operate unsold vends, but the corporation declined to run them.
