After excise duty hike, bar owners complain of drop in liquor sales

BENGALURU: The Excise Department, one of the highest revenue grossers for the state government, is surprisingly seeing a downturn in earnings over the last three months. This has been attributed to poorer sales.

Compared to previous years, the state has witnessed a 5 per cent decline in liquor sales over the last three months after the state government increased excise duty by 20 per cent. The prices of liquor are now the highest compared to neighbouring states and some people prefer to buy outside the state, according to the Bengaluru Bar Owners’ Association.

Also, air travellers from Delhi and Goa pick up liquor from those places, which has affected sales here. The rise in prices of essential commodities is another contributing factor, the association feels.

“The state government increased excise duty by 20 per cent in July which has led to a drop in sales by about 5 per cent compared to last year. Premium brand liquor costs about Rs 900 less in Goa, Maharashtra and Telangana. Scotch whiskey costs Rs 1,600 to Rs 5,000 less in Delhi, Haryana and other domestic airports from where flyers can bring about 5-6 bottles. To stop this, the Excise Department and state government should initiate steps instead of fixing unscientific targets for us. This and bribery has created more pressure for us”, said Lokesh president of the Bengaluru Bar Owners’ Association.

Lokesh president of the Bengaluru Bar Owners’ Association.

In September, the total sale of liquor was Rs 3,273 crore while in August, it was Rs 3,096 crore. Similarly, 57 lakh cases of Indian Made Liquor (IML) and 31 lakh cases of beer were sold in September, 52.5 lakh cases of IML and 31.5 lakh cases of beer in August and 66 lakh boxes of IML and 29 lakh cases of beer were sold in July this year.

Compared to July, the sale of liquor in August and September dropped by about Rs 180 crore. Some of the bar owners attribute this to the 20 per cent rise in excise duty imposed in the budget. They have also sought some changes to the rules in order to salvage the situation.