Puducherry Imposes Special Excise Duty On Liquor To Keep Off Tipplers From Neighbouring Tamil Nadu

Puducherry will no more be a heaven for tipplers, especially for those from adjoining Tamil Nadu, after it began imposing a special excise duty (SED) on various brands of liquor.

The Union territory resumed liquor sales after a two-month gap on Monday (25 May) and immediately levied 25 per cent SED on 766 Indian made foreign liquor (IMLF) brands that are exclusively sold in Puducherry and Karaikal.

Liquor shops and outlets were closed since 25 March as part of the Centre’s nation-wide lockdown to tackle the spread of novel Coronavirus (Covid-19) across the country.

The SED will be on the maximum retail prices (MRP) levied on these brands. The Congress-led Union territory Government also decided to impose a variable SED on another 154 brands that are sold by it.

The SED would be the difference between the existing and revised MRP and depends on the brands. The V Narayanasamy Government will also impose a 20 per cent SED on arrack.

The SED is expected to be imposed for three months as part of the Union Territory’s efforts to keep tipplers from Tamil Nadu away.

PWD Minister A Namassivayam, who also administers the excise portfolio, said the SED has been imposed to ensure that people from adjoining districts of neighboring States do not come to Puducherry to purchase liquor.

Liquor would be sold on a takeaway basis from 10 am to 7 pm in te Union territory, while bars are not allowed to sell liquor.

Times of India reported that the SED has more than doubled the prices of ordinary liquor brands, while beer drinkers are the worst hit.

Prices of medium and premium brands have also gone up steeply, at par with prices in Tamil Nadu. This clearly will help Puducherry to keep off tipplers from the neighbouring State who often cross over to get their favourite brand at cheaper prices.

For the Yanam region of the union territory that adjoins Andhra Pradesh, the Narayanasamy Government plans to impose a SED that will make prices at par with those in that State.

Similarly in Mahe, which adjoins northern Kerala, liquor sale will begin only after the Pinarayi Vijayan government resumes liquor sales.