While Odisha is facing an acute shortage of resources to fund its Budget, it is likely to incur a loss of revenue to the tune of Rs1,200 crore per annum as over 1,167 liquor shops in the State closed down following the Supreme Court’s order banning liquor sale within 500 meter of the National and State Highways.
The 1,167 liquor shops closed down from midnight of March 31 included 456 off shops, 205 restaurant on shops, 60 hotel on shops, 74 country spirit shops, 51 beer parlour on shops, 9 out still shops, 311 out still branch shops and a military canteen, official sources said.
“The State is likely to lose Rs1,200 crore annually plus VAT if these 1,167 liquor shops remain closed for the year,” a senior official in the Department of Excise revealed.
While the State had set a target of earning above Rs3,300 crore as excise revenue in 2017-18 financial year, it would receive Rs2,100 crore, which would be a major blow to the State exchequer.
Apart from the revenue loss due to closure of liquor shops located within 500 meter from the NHs and SHs, over 3,000 people would lose their jobs. The liquor traders also said that they are unable to shift shops beyond 500 meter from the highways because the new proposed locations come close to villages at many places.
In 2015-16, the collection of excise revenue stood at Rs2,547 crore. By January this year, the earning had reached Rs2,111 crore. The Government had estimated to earn Rs3,000 crore in 2016-17.
The worst-affected places are Bhubaneswar, Cuttack, Khordha, Rourkela, Sambalpur, Jharsuguda, Brahmapur, Baripada and Baleswar, where a large number of liquor outlets are located by the side of highways. In Bhubaneswar, a number of major hotels and restaurants are affected. Bars in 25 hotels and restaurants in Khordha district, including Bhubaneswar, were closed, said a senior official of the department.