JAIPUR: The application money for retail liquor shop licences came down to Rs 860 crore for the next financial year compared to the current year when the revenues were higher at Rs 1007 crore.
But a senior official in the excise department said that when the lottery system is conducted for the second consecutive year, the revenues generally go down. Secondly, the slowdown in economy is another reason behind lesser number of applications as it has affected the sentiment of businessmen.
“This year’s lottery revenue is Rs 860.24 crore. Second year lottery held in 2017-18 was Rs 834 crore. According to the trend, this is a better achievement. Also, we cannot ignore the fact that there is an economic slowdown in the country which has also affected the business sentiment,” said the official.
Rajesh Dukia, who puts in applications regularly, said that if the licence period is for two year, it makes a business case for the applicant.
“By the time one settles down to the business, it takes 3-4 months. So, a good part of the year is over. But if the licence is for two years, it provides more time to do business,” said Dukia.
But some in the industry pointed out that the margins are not there now and they are not getting the assured returns of about 20% which is putting off people.
“The new policy announced for 2020-21 is not very investor friendly. That’s why the response is not very encouraging this time,” said Naresh Pareek, treasurer of Raj Liquor Welfare Society.
He said the government should have withdrawn the mandatory increase in sales policy. Secondly, he said the prices have liquor have gone up significantly. “Such an adverse policy will only encourage bottle legging. In neighbouring states, the prices are very low and the government will lose revenues instead of increasing them by raising the rates,” added Pareek.
But the department sources said that they are hopeful of reaching closer to the revenue targets of Rs 12500 crore set internally for the next year. Others said the transparency measures announced in the policy like providing bills and getting details of the liquor through a smart chip could have been a dampener for retail shops who charge extra bucks over the printed rates.
“When they don’t get the mandated government return, they try to recover that from charging extra money over the printed rates. With new measures in place, that practice will have no scope,” said a retailer.
But a senior official in the excise department said that when the lottery system is conducted for the second consecutive year, the revenues generally go down. Secondly, the slowdown in economy is another reason behind lesser number of applications as it has affected the sentiment of businessmen.
“This year’s lottery revenue is Rs 860.24 crore. Second year lottery held in 2017-18 was Rs 834 crore. According to the trend, this is a better achievement. Also, we cannot ignore the fact that there is an economic slowdown in the country which has also affected the business sentiment,” said the official.
Rajesh Dukia, who puts in applications regularly, said that if the licence period is for two year, it makes a business case for the applicant.
“By the time one settles down to the business, it takes 3-4 months. So, a good part of the year is over. But if the licence is for two years, it provides more time to do business,” said Dukia.
But some in the industry pointed out that the margins are not there now and they are not getting the assured returns of about 20% which is putting off people.
“The new policy announced for 2020-21 is not very investor friendly. That’s why the response is not very encouraging this time,” said Naresh Pareek, treasurer of Raj Liquor Welfare Society.
He said the government should have withdrawn the mandatory increase in sales policy. Secondly, he said the prices have liquor have gone up significantly. “Such an adverse policy will only encourage bottle legging. In neighbouring states, the prices are very low and the government will lose revenues instead of increasing them by raising the rates,” added Pareek.
But the department sources said that they are hopeful of reaching closer to the revenue targets of Rs 12500 crore set internally for the next year. Others said the transparency measures announced in the policy like providing bills and getting details of the liquor through a smart chip could have been a dampener for retail shops who charge extra bucks over the printed rates.
“When they don’t get the mandated government return, they try to recover that from charging extra money over the printed rates. With new measures in place, that practice will have no scope,” said a retailer.
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