The UT excise and taxation department will fall short of meeting its excise revenue targets this time too as it has been able to auction only 76 out of the total 97 liquor vends, despite slashing the reserve price by 17% in the last five rounds. The sixth auction is scheduled on April 24.
In 2023, the department had failed to auction 18 liquor vends even after 20 rounds of auctions, resulting in a loss of nearly ₹150 crore.
During the auctions held this year, 51 vends were auctioned in the first auction on March 7, followed by 10 vends on March 15, five vends on March 23, six vends on April 10, and four vends on April 18.
In 2024-25, the department aimed for ₹800 crore revenue from excise, with the total reserve price of all vends fixed at ₹452.29 crore. However, due to the slashing of the reserve prices in the past five auctions, the department has already incurred a loss of nearly ₹35 crore.
Darshan Singh Kler, the president of the Wine Contractors’ Association said, “The UT is finding no takers for its liquor vends due to the high excise duty and VAT, which has caused the vendors huge losses in the past two years. We suggested that they bring down the taxes but they paid no heed.”
A senior official of the UT excise department acknowledged that although they have reduced the reserve price, only 76 vends have been sold so far. However, they remain hopeful that in the next three or four rounds, they will be able to auction all the vends.
{{/usCountry}}A senior official of the UT excise department acknowledged that although they have reduced the reserve price, only 76 vends have been sold so far. However, they remain hopeful that in the next three or four rounds, they will be able to auction all the vends.
{{/usCountry}}For the financial year 2023-24, the department had set a revenue target of ₹830 crore from liquor vend licence fees. However, only ₹600 crore could be collected.