Expert panel on revenue favours ENA-based liquor

BHUBANESWAR: The expert committee on the revenue-enhancing measures has recommended introduction of extra neutral alcohol (ENA)-based Indian Made Foreign Liquor (IMFL) in place of country spirit (CS) on a pilot basis in one of the districts in which CS consumption is prevalent.In its report submitted to the Finance Department, the committee said some states like Andhra Pradesh, Tamil Nadu and Kerala have banned rectified spirit (RS)-based alcohol to control its ill effects on people’s health and encouraged ENA-based IMFL.The committee said this should also be introduced in a district where out-stilled (OS) liquor consumption is prevalent. Such introduction of ENA-based IMFL in a district would not be a substitute of the OS, but it would be introduced while the OS shops would continue, it said.The idea is to find out the preference of the consumers between two types of liquor. It said as ENA-based liquor is branded one and of improved quality, there is a chance that some consumers may switch over to it. The committee said after three years the results of the pilot projects in the CS and OS liquor prevalent districts should be assessed. If results are encouraging for consumption of ENA-based alcohol, extension to other districts can be considered, it said. It recommended that fixation of excise duty on ENA-based alcohol should be at a rate higher than the rate applicable for CS. The panel maintained that introduction of IMFL would cut down illicit distillation and consumption of country liquor and increase government revenue through the sale of duty-paid IMFL. Another option would be to encourage distillers to build brands of country liquor which would ensure consistent strength, assured quality and value pricing.