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Liquor costlier in T’gana, govt looks for additional revenue

By, Hyderabad
May 20, 2022 12:48 AM IST

According to the revised budgetary estimates for 2021-22, the state government had earned ₹31,225 crore from liquor sales

Consumption of liquor has become costlier in Telangana from Thursday with the state government increasing prices of various liquor brands by up to 25 per cent to mop up additional revenues to the state exchequer.

A senior official of the state revenue department said the increase in all brands of liquor is expected to result in the mobilisation of additional revenues of <span class='webrupee'>₹</span>6,000 crore to <span class='webrupee'>₹</span>7,000 crore this financial year. (Representative Photo)
A senior official of the state revenue department said the increase in all brands of liquor is expected to result in the mobilisation of additional revenues of 6,000 crore to 7,000 crore this financial year. (Representative Photo)

A revised price list announced by the Telangana State Beverages Corporation revealed that the increase in prices of alcohol went up by 10 on a 650 ml bottle of beer to 160 on a full bottle (750 ml) of premium brand of Indian Made Foreign Liquor (IMFL).

For example, the price of a full bottle (750 ml) of Antiquity Blue Ultra-premium whisky has gone up from 1,290 to 1450. Similarly, the price of Bacardi Carta Blanca classic white rum has gone up from 1,160 to 1,320 a bottle.

A senior official of the state revenue department said the increase in all brands of liquor is expected to result in the mobilisation of additional revenues of 6,000 crore to 7,000 crore this financial year.

According to the revised budgetary estimates for 2021-22, the state government had earned 31,225 crore from liquor sales and for 2022-23, the state government has projected a revenue of around 37,500 crore from liquor. “With the present hike in liquor prices, there could be another 6,000 crore revenue,” the official said.

In December 2021, the Telangana government increased the number of retail wine shops from 2,216 to 2,620. It had collected a non-refundable fee of 2 lakh, besides an annual retail excise tax of 5 lakh on allotment of the licence. In January 2021, the government had given permits for 159 additional bars across the state, apart from already existing 800 bars and 27 clubs and pubs that serve liquor, to mop up additional revenues.

Telangana Wine Dealers’ Association president D Venkateshwar Rao said the sudden increase in the prices of liquor brands might result in drop in sales in the first couple of months. “Even the cheapest liquor brand has become costlier by around 60 to 80 per bottle. This might force the low-end consumers to shift to illicit country-made liquor in the villages that might prove hazardous to health,” he said.

However, in the urban areas, boozers might grumble initially, but would eventually buy alcohol even at a higher rate because they were habituated to consumption. “It is like an increase in petrol and diesel prices. The consumers will have no option but to buy it despite ever increasing prices,” Rao said.

The revenue department official said the state government had to go in for a hike in liquor prices due to the financial crisis and the Central government’s decision to tighten norms on market borrowings. The state government has already taken up several resource mobilisation attempts like enhancement of market value of lands, registration charges of properties and hike in RTC bus fares and electricity charges.

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