State to increase licence fees for bars

The government will increase the licence fee for bars in the state from April onwards. The increase will be higher in urban and semi-urban areas compared to municipal corporations. The excise department had sent proposals to the government in this regard. The enhanced fees will be noted in the new excise policy to be announced in April.

Official sources said that the increase in places where the population is around 50,000 (first category) would be as high as 70 per cent while the lowest hike of 14 per cent will effected in Hyderabad, Visakhapatnam and Vijayawada.

Sources said the fee would be enhanced to about Rs 25 lakh from Rs 15.09 lakh in the first category and from Rs 22.23 lakh to Rs 29 lakh in areas where population is between 50,000 and three lakh. The fee will be up from Rs 25.40 lakh to Rs 30 lakh in areas with a population between three lakh and seven lakh. In metros, the new fee will be Rs 31 lakh as against Rs 27 lakh.

The government is under pressure from the licensees of retail liquor outlets to create a level playing field for them with bars. In several places, it was found that the bar owners have been selling liquor packaged in lesser quantities for a cheaper price than wine dealers who pay Rs 40 lakh to 70 lakh for each outlet.

As per the rules, bars can purchase only full bottles from the beverages corporation but because of an understanding with some retailers, they have been getting stocks of 180 ml and selling the same for a lesser price. The wine dealers argued that bar owners have the advantage of paying a lesser licence fee and the same should be removed.