Andhra Pradesh soon to be a 'dry' state?
Voices Monday, July 07, 2014 - 05:30
The News Minute| July 7, 2014| 01:40 pm IST The liquor consumption in Andhra Pradesh may soon have to go down in the face of a looming crisis. With the bifurcation of the state, 62% of the breweries and distilleries have gone to Telangana while consumption remains higher in Andhra Pradesh at 60%, reports The Times of India. The main problem here is that liquor trade between the two states will now have additional taxes levied on it. According to a contract signed in the undivided Andhra Pradesh, the signatories are obliged to supply liquor at a particular price and cannot pass the cost of the additional charges to the consumer. As a result, the manufacturers will have to bear the extra cost themselves and this is something that they cannot afford. To deal with the situation, the production will have to be brought down even as the demand remains the same. Under the current arrangement, the sale of liquor between Telangana and Andhra Pradesh will include import duty, export, central sales tax and the commission fee charges by Telangana States Beverages Corporation Limited. Ashutosh Mishra, the special consultant on revenue matters with regard to bifurcation had recommended that both states waive import and export tax on liquor trade between the states. Owners of manufacturing units from Telangana have approached the Chief Ministers of the states to demand that the taxes be waived for three years. The low-cost liquor manufacturers have been affected more since the premium liquor manufacturers are capable of bearing the additional charges. The matter is currently in a deadlock and no sale of liquor has taken place from the distilleries of Telangana since the bifurcation.