Excise Dept seeks roll back of 50% hike in liquor prices

JAMMU: The significant decline in sales have prompted Jammu and Kashmir Excise department to suggest government for waving-off the 50 percent additional excise duty on liquor, which was imposed to meet the financial gap occurred during the lockdown followed by the outbreak of COVID-19 pandemic.
Soon after the outbreak of COVID-19 pandemic, the Jammu and Kashmir government closed liquor stores as per the guidelines issued by the Centre government in lockdown to combat the spread of the deadly virus. After the hiatus of 2 months, the liquor stores were opened on May 22 with 50% additional retail excise duty on liquor.
"After taking a review of the revenue realization in the last months, it has been found that there is a drastic fall in the sale of liquor especially middle & low economy class brands and also the sales in Army/ Para-military units Canteens," J&K Excise Commissioner Rajesh Kumar Shavan said, in a letter to Financial Commissioner, Finance Department, Arun Kumar Mehta.
"The 50% additional excise duty has discouraged the consumers to purchase less quantity both in the open market as well as in the unit Canteens. Figures have revealed that the quota lifted from the Army Depot across the Union Territory has declined as compared to the previous period," reads the letter.
"Reliably It is learnt that many other States have rolled back the additional duty (Corona Tax). It is therefore recommended that this 50% additional duty may kindly be waived off, till the new Policy comes into force to that overall sale and manufacturing of liquor/Beer is enhanced to generate revenue," reads the letter.
Notably, The News Now had earlier reported that after initial surge, the sales at liquor stores declined gradually.
An official of J&K excise department said that in the first three days the department had realized the revenue of Rs 18 Crore but now the department is now witnessing a significant decline in the sale as well as revenue realization.
He also said the excise department is a major contributor in the total revenue of Jammu and Kashmir.
“Pre-lockdown and before a hike in the excise duty, the excise department usually contributed the revenue of Rs 3.5 crore per day,” he said.
Meanwhile, the distilleries owners fear an increase in production cost due to the absence of adequate labourers. “The distillers, breweries and bottling resumed functioning last week in Jammu and Samba,” an official said.
“The production may also decline and the cost may be increased as they industrialist are finding adequate numbers workers,” he said.