PANJIM: Chief Minister Dr Pramod Sawant’s announcement of increasing cess on the liquor is expected to fetch additional revenue of Rs 100 crore.
The government decided to hike excise duties and fees on the sale of all kinds of liquor, including the State’s very own drink feni, by 20 per cent to 50 per cent, as per the Budget papers. Information reveals that the State collected Rs 477.67 crore as Excise revenue during the financial year 2018-19, up 16.5 per cent over the previous year.
The hike this year is expected to garner additional Excise revenue of Rs 100 crore, up by nearly 25 per cent, Finance Secretary Daulat Hawaldar informed Herald in a telephonic conversation.
However, what is difficult to understand is, how would the State benefit from the additional Rs 100 crore revenue, as State is borrowing nearly Rs 200 crore every month and the small increase in Rs 100 crore will hardly matter. Also, another important aspect is that the hike may cause more harm than the benefit, experts say as the tourists, who bought four bottles may now buy just two, or may not even come to Goa.
Dr Sawant proposed to revise the licence fee for the bars, restaurants, stores and supermarkets selling booze. For example, bars without AC, and in Panjim coastal village, will have to pay Rs 15,000 upto 50 sqmts of area and an additional Rs 2,000 for every extra 10 sqmts. Earlier, they were paying only Rs 15,000. However, the announcement does not seem to have gone well with stake holders who have opposed the move.
The Goa Liquor Traders’ Association have strongly opposed the move saying it would further dent the tourism and liquor industry.
“Hikes like these will totally kill the liquor industry, which is one of the few industries in the State that is controlled by locals. 75 per cent of the liquor bought in Goa is not for consumption, but to carry it back, of which two bottles per passenger is allowed,” President of Goa Liquor Traders Association Dattaprasad Naik, said.
Naik said that if the proposed hike is implemented the price of foreign liquor in Goa will be higher than much of North India and higher than the price in 71 per cent of the country.
“This Rs 100 crore revenue they are hoping to get is subject to sales. It is only if sales continue at current levels will they get such revenue, which is not going to happen. Tourists will start bringing their liquor from their own States to drink in Goa. Alcohol will be cheaper here than only what it is in Maharashtra and some other States.”
While discussing the Budget, Dr Sawant had revealed to the media that the government had only made a small hike in tax to not overburden the common man. The government also hiked stamp duty, fees and excise duties by a small amount as well as revised the land rates. Court fees have also been increased.
During his Budget speech for 2020-21, he revealed that Goa has a limited tax base through which revenue can be increased. Special efforts are also being made to plug leakages in the system and enhance efficiency in the tax collections.
