Lockdown 3.0: Long queues outside liquor stores lead to revenue boost for states
While the sale of liquor is proving to be a headache for the law enforcement agencies as cops try to enforce social distancing norms outside liquor shops, the states themselves appear to have gained by it in terms of revenues earned on day one of lockdown 3.0
Tuesday, the second day of lockdown 3.0 across India was no different from day one in one aspect: long queues continued outside liquor stores in different parts of the country.
One of the relaxations in lockdown curbs after 40 days to reboot the economy was allowing opening of licenced liquor shops in many states including Rajasthan, Uttar Pradesh, West Bengal, Karnataka and Delhi. The permission, however, didn’t apply to containment areas.
While this proved to be a headache for the law enforcement agencies as cops tried to enforce social distancing norms outside liquor shops, the states themselves appear to have gained by it in terms of revenues. Liquor sale is a big source of revenue for the governments.
Uttar Pradesh registered sale of over Rs 100 crore from the sale of liquor on Monday, reports news agency IANS.
State excise department officials said that in state capital Lucknow alone, liquor worth Rs 6.3 crore was recorded.
“I don’t think there would be any single industry with just less than one lakh work force that gives Rs 100 crore revenue (to the state exchequer) in a day, “ Principal Secretary, Excise, Sanjay Bhoosreddy was quoted as saying by IANS. The average daily sale of liquor in the state in normal times is around Rs 70-80 crore.
Karnataka, too, saw sale of liquor valued at Rs 45 crore on Monday.
“As per the tentative figures we received from across the state, around 3.9 lakh litres of beer and 8.5 lakh litres of the Indian-made liquor (IML) were sold, netting Rs 45 crore when the liquor shops were shut by 7 p.m., as per the new guidelines,” an excise official told IANS in Bengaluru.
Buoyed by the surge in liquor sale on day one itself, the Karnataka government decided to hike the prices of all brands when new stocks arrive next week, state excise minister H Nagesh said on Monday.
“All liquor brands will cost more from next week when new stocks arrive for sales, as the 6 per cent increase in additional excise duty will be added to their maximum retail price,” Nagesh told reporters, reports IANS.
Hike in liquor prices
Delhi and Andhra Pradesh, too, have decided to hike liquor prices.
Andhra Pradesh on Tuesday hiked the prices of liquor by 50% , a day after imposing a 25% increase. This takes the overall hike in liquor price in the southern state to 75%. The revised rates came into effect from Tuesday itself. The hike has been imposed to discourage alcohol consumption, according to the chief minister’s office, reports ANI.
Sources said the fresh hike (50 per cent) in rates could fetch an additional revenue of Rs 9,000 crore per annum to the cash-starved state government, according to PTI.
‘Special Corona Fee’
The Arvind Kejriwal-led Delhi government late on Monday imposed a “special corona fee” of 70% of the MRP on all categories of liquor that will be sold in the city with effect from Tuesday.
The fee would apply at “70% of the maximum retail price of all categories of liquor sold through written licences for consumption off the premises,” read a government order.
Senior government officials said that the lockdown since March 25 to prevent the spread of Covid-19 cost the Delhi government around Rs 645 crore in revenue from the sale of alcohol, when calculated on the basis of revised estimates in the 2019-20 state budget.
(With inputs from agencies)
