Liquor retailers: excise duty hike is ‘going to be counter-productive’

Panaji: Members of the liquor retail industry in the state, on Thursday, gave sharp thumbs down to the government’s proposal to increase excise duties on all wines, beer, IMFL, country liquor, foreign liquor, and other alcoholic beverages sold in local shops. 

The increase in excise duty ranges from Rs 5 per bulk litre to Rs 1,000 per bulk litre for a 750 ml container depending on the price of the drink.

“It will make liquor costly and have a major adverse impact of tourism,” said Dattaprasad Naik, president, All Goa Liquor Traders Association (AGLTA).

He said that already liquor in states of north India, viz Rajasthan, Madhya Pradesh, Punjab, Haryana, Delhi and Chandigarh is much cheaper than in Goa.

“With the price going up, we will lose the entire business of tourists coming from north India,”

feared Naik.

He claimed that, post-price increase, Goan consumers are likely to downgrade to a cheaper brand.

The brands consumed by the common man are going to be costlier by Rs 75- Rs 100 per bottle.

“Incomes are not increasing.  Residents would prefer to consume cheaper drinks,” said Naik.

The state expects to garner Rs 100 crore from the liquor industry by way of excise duty hike, increase in permit fees, transportation

licence,  etc. 

According to Naik, the move is going to be counterproductive as it would hit the market. 

“We don’t see the Budget proposals generating revenues to the government as sales will decline. Tourists will come with their own bottles,” he said.

Members of the retailers association wanted the government to streamline the industry.

 According to them, outsiders are coming to the state and taking retail licences on lease which is illegal.

The liquor retailers association is planning to fix a meeting with the Chief Minister to request roll back in excise rate for certain slabs.