‘Unscientific' policy will not only hit excise revenue, but also kill sector itself, says Ashok
In a release, Mr. Ashok said that there should be a standard parameter for increasing liquor prices and licence fees. However, the arbitrary and repeated hikes in liquor prices and licence fees within a year will have an adverse impact on the industry, he warned.
Mr. Ashok pointed out that while the government boasted of not imposing new taxes in the Budget, it subsequently increased liquor prices arbitrarily. Notably, beer prices have been hiked two to three times in a year, burdening consumers significantly, he pointed out.
He alleged that a lack of proper preparedness in the implementation of guarantee schemes and financial indiscipline had pushed the government to the brink of financial bankruptcy. To make up for this, the government was now trying to increase the prices of various services and goods. This had compounded woes as such hikes had not helped in improving the financial condition of the government. On the other hand, these had adversely impacted the industry and amounted to exploitation, he alleged.
'The government has now moved towards increasing fees for all aspects of the liquor industry, including production, bottling, and retail shops, by up to 100%. For this, amendments to excise laws have been proposed, and a draft notification of revised rules has been issued. The revised rates will come into effect on July 1, effectively sounding the death knell for the industry,' he alleged.
The department has been set a target of earning ₹40,000 crore, and officials are exploiting everyone to achieve it, thereby pushing the industry into distress, Mr. Ashok alleged.
Mr. Ashok urged the government to reconsider the revision of licence fees. 'The government must abandon unscientific measures and make appropriate decisions keeping the interests of the industry, vendors, and consumers in mind,' he observed.
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