No increase in liquor outlets’ licence fee

“This move will only encourage the sale of illicit liquor, which will endanger the lives of people,” said M D Shetty, president of the federation. He added that the price of alcoholic drinks would be more than double if the fee was imposed on hoteliers. “A peg of whisky which costs Rs 40 today, will have to be sold at nearly Rs 100, if we are to recover the cost of the fee,” heclaimed.

State Excise Commissioner Ashok Lal had issued notices to hotels all over Maharashtra on January 29, asking them to renew their licences by April. In the notification, the licence fee for permit rooms, beer bars and country liquor outlets was increased three-fold.

The licence fee for permit rooms was hiked from Rs 88,000 to Rs 2.64 lakh. Beer bar licences would be issued at Rs 1.82, three times the previous rate of Rs 60,500. Country liquor bars too have had to bear the brunt of the hike, with licence fee increased from Rs 40,000 to Rs 1.5 lakh.

The Government has also imposed an eight per cent sales tax on liquor sold through outlets, which will be collected from the customer by the retailers. Thus, a person buying alcoholic drinks from wine shops will also have to pay the additional tax along with the maximum retail price marked on the bottles, the federation claimed. This is the first time sales tax has been imposed on wine shops and hotels. Previously, the tax had been limited tomanufacturers.

Although the Government’s move is meant to augment revenue collection, fears of its repercussions have not been addressed. Senior excise officials admit that it is likely to result in increased illegal import of liquor and boost the sale of adulterated alcohol. “But it is a government decision; we will have to tackle the problem,” said an official.

However, Mehta dismissed any such possibility. “We will not allow such a situation to arise,” he said. He claimed that the hike in licence fee was justified in the light of the fact the previous hike had been in 1993. “Moreover, the increased fee in Maharashtra can still be favourably compared to that in other states,” he added.

The move is likely to earn the government nearly Rs 90 crore per year, although hoteliers claim that non-renewal of the fees by them would result in a loss of Rs 35 crore for the State. Over one lakh litres of alcoholic beverages are consumed in the State every day.

The New Bombay and Western India branches ofthe Hotel and Restaurant Association have decided not to renew their licences this year in protest against the government’s move. Lal refused to comment on the issue.