Meerut: Weeping over the revenue loss in the state, the Uttar Pradesh government has slashed down excise tax exemption on sale of liquor in Army’s Canteen Stores Department (CSD). With the civilians bearing the brunt of rising prices of essential commodities, the state government is looking at the defence forces to play its part in controlling the government expenses.

While the debate over CSD discount on four-wheelers is still in a puddle, the government has asked the Quarter Master General (QMG) Army head-office to end the tax exemption on liquor. This will result in 20-40 percent hike in the prices of various liquor brands.

The military canteens sell liquor at half the market price, supplied tax-free by the Excise department.
UP ex-service Veterans League President Col (Rtd) Kishan Singh said, “The state government has ordered to end the 10 percent tax exemption on liquor in CSD canteens and only VAT relief will be in place.”

He added, “A letter has been sent to the state government to revert the orders but to no avail.”

The QMG has already fixed a pay band in the CSD canteens along with a fixed quota of liquor. Under the pay band, a limit of Rs 3500 has been fixed, brought down from Rs 5000, for Army men posted in the ranks from soldiers to sergeants while Rs 5,000 has been fixed for those posted in the ranks from Naib Subedar to Honorary Captain (JCOs). They earlier used to avail goods worth Rs 7,500.