After Delhi, Andhra to charge 75% tax on alcohol: Will other states follow?

Liquor outlets in the state saw huge rush on Monday, on being opened after 40 days.
Andhra Pradesh Chief Minister Jagan Mohan Reddy
Andhra Pradesh Chief Minister Jagan Mohan Reddy
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The Andhra Pradesh government is set to levy a 75% prohibition tax on liquor, a day after liquor stores saw huge crowds on their first day of opening in 40 days. Despite a 25% hike in alcohol prices previously announced on Sunday, liquor outlets saw long lines with no physical distancing on Monday. 

The decision came soon after the Delhi government announced a 70% additional tax on liquor purchases on Monday evening. The Delhi government has termed this a “special corona fee.” The fee is applied on the MRP (maximum retail price) per bottle.

The increase in the Additional Retail Excise Tax(ARET) affects the prices of Indian Made Foreign Liquor (IMFL), foreign liquor, beer, and ready-to-drink alcoholic beverages. The additional tax on a 60 or 90 ml bottle of IMFL could now range from Rs 20 to Rs 60, depending on the MRP.  The ARET on a 750 ml bottle could range from Rs 160 to Rs 480. For a 330 ml beer, the ARET is now Rs 40, and for a 650 ml beer, it is fixed at Rs 60. Previously, the ARET for a 330ml and 650 ml beer was Rs 10 and Rs 20, respectively.

The 25% price hike announced earlier was intended to both discourage crowding and physical contact during the pandemic, and also to discourage liquor consumption, as part of the YSRCP government’s steps towards prohibition. 

Of the total 3,468 liquor outlets in the state run by the state-owned AP State Beverages Corporation Ltd, 2,345 were opened in various districts on Monday. Stores were opened across red, green, and orange zones in various districts, barring containment zones. 

According to PTI, the state government recorded a revenue of Rs 40 crore from the sales on Monday. 

Sales will begin with inflated prices on Tuesday afternoon. The number of stores which were previously reduced from 4,380 to 3,468, are set to be reduced further by 15%.

According to the guidelines issued by the state government on Sunday, not more than five customers must be allowed at a store at a given time, while maintaining a physical distance of six feet.

Sales personnel at liquor outlets were asked to wear masks and keep sanitisers for use in the shops.

In case too many customers showed up, the guidelines say that local police must be informed, and the store may be closed temporarily to maintain law and order, and can be reopened once the crowd is under control and there is no rush. 

 

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