Manufacturers of alcoholic beverages have urged the State Government to reduce the Special Covid-19 Fee imposed on liquor from 50% to a reasonable rate and allow the retailers to sell products from outlets.
In a representation to Chief Minister Naveen Patnaik, the Confederation of Indian Alcoholic Beverage Companies (CIABC) said the special cess has increased consumer prices by 50%, leading to a drastic fall in liquor sales and a decrease in tax collection.
The Government’s tax collection could be hit with declining sales, said CIABC director general Vinod Giri, pointing out that the Government had only permitted home delivery of liquor with a 50% fee and no excise licensee is allowed to sell from outlets. This is preventing a large number of consumers from buying liquor as they are not familiar with the technology for online ordering.
“It is also pushing some consumers to take illicit alcohol, which poses serious health risks. The shutdown of retail shops is also threatening the livelihood of around 50,000 people who are associated with the distribution and sales of liquor through retail outlets,” he said.
Liquor sales in May declined by 87% compared to that in the previous month. The CIABC has urged the Government to reduce the special fee to a level that the consumer prices do not go up by more than 10% to 15%, he said.
Giri said the Delhi Government, after weighing the data presented by the association, recently withdrew the 70% cess on liquor and replaced it with a 5% increase in VAT.