Tag Archives: Alcohol Ban

No Liquor on May 21 in Karnataka, Industry Opposes Constant hikes in excise duty and license fee

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  • As per draft notification the annual license fee has been increased from ₹27 lakh to ₹54 lakh
  • For distilleries and warehouses, it has been increased from ₹45 lakh to ₹90 lakh

Distilleries and liquor shops in Karnataka are up in arms against the Karnataka Government which has been raising excise duty and license fees at regular intervals. As a mark of protest, they have called for a strike on May 21 and retailers have decided not to purchase liquor from government depots.

On May 15, yet again, the Karnataka government issued a draft notification to double the license fee on May 15. Organisations such as the Karnataka Wine Merchants Association, the National Restaurant Association of India, and the Karnataka Brewery and Distilleries Association have opposed this move and have given a call to all liquor vends in the state to close on May 21. They said across the State almost 12,000 licensed liquor shops will down the shutters.

According to the draft notification the annual license fee has been increased from ₹27 lakh to ₹54 lakh. For distilleries and warehouses, it has been increased from ₹45 lakh to ₹90 lakh. The new fees will come into effect from July 1.

The associations said the repeated hikes by the government had rendered the business unviable, leading to closure of many liquor shops.

The Congress-I government has been increasing excise, milk prices, flat registration charges etc. as to fund the many freebies it announced during the elections. Excise officials say that the fee was increased this year to make up for the shortfalls of the previous financial year. The revenue target for the financial year 2024-25 was 38,525 crores. But only 35,530 crores could be collected. Retailers said the new license fee hike will hit budget segment sales and small outlets. They said that nearly 40 pubs in Bengaluru closed last year as doing business was becoming difficult.

Liquor Prohibition in J&K?

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The Jammu & Kashmir People’s Democratic Party (PDP), led by Mehbooba Mufti, has started a signature campaign seeking prohibition. The PDP has called the ruling National Conference of Omar Abdullah a government indulging in ‘hypocrisy’.

Across Srinagar, the PDP has put up posters seeking a ban on liquor sales and urging tourists to ‘respect local culture and traditions’. The campaign was spearheaded by Iltija Mufti, daughter of Mehbooba Mufti. Even as posters are coming up the police is getting the posters removed.

But what is more surprising is that the government had conducted an economic survey and presented it to the Assembly. The report projected a 4% increase in excise revenue, expected to touch ₹2,000 crore in 2024-25. The rise is attributed to policy changes, including strengthened tracking mechanisms, transparent auctions for liquor vends, and an overhauled excise framework.

PDP has led the charge, with MLA Fayaz Ahmad Mir submitting a bill to ban the “advertisement, sale, purchase, consumption, and manufacture of alcoholic drinks” in the region. The National Conference and independent legislator Sheikh Khurshid Ahmad followed suit with the BJP also voicing support.

In Jammu, the former J&K BJP president Ravinder Raina had earlier staged protests against alcohol sales. PDP chief and ex-CM Mehbooba Mufti’s daughter Iltija launched a signature campaign recently to rally public backing, vowing to take it to every constituency in Kashmir. “We want J&K to be declared a dry state like Gujarat and Bihar,” Iltija said. “J&K is called the land of rishis and peers (Sufi saints). We have our own sensitivities, culture, and customs. That should be respected.

Recently traders at Srinagar’s historic Lal Chowk had put up posters that, after welcoming tourists, said, “For a memorable and enjoyable trip, we kindly request: Love and cherish your family, avoid liquor, drugs, spitting on roads and smoking. Respect our culture and traditions”.