Hyderabad: In a bid to generate more revenue from liquor trade, the State Government has enhanced the application fee from the current Rs two lakh to Rs three lakh. This implies that all potential licensed wine shop dealers will have to cough up an additional Rs one lakh to purchase application forms ahead of their participation in the auction for the two-year period 2025-2027. The State excise and prohibition department is hopeful of netting over Rs 3,000 crore from the sale of applications in November. In the 2023 auction, the government had earned Rs 2,000 crore from the sale of applications.
Approximately, 2,620 licensed wine shops are being auctioned through draw of lots in November. As licenses of the existing outlets end on November 30, the excise wing has issued the price revision early in order to complete the exercise by November-end. “The government is also likely to revise existing licence fees in the new excise policy that is to be announced shortly”, excise officials said. They added that the department is studying the possible impact on the liquor business, once the revised rates come into force. It may be noted that many wine shop dealers have been pouring their woes vis-à-vis exorbitant hikes.
In Hyderabad, wine shop dealers pay a whopping Rs 1.10 crore every year. Most of the wine dealers complained that their revenues have declined ever since bars and restaurants were allowed to serve liquor at MRP prices.
Permissions for setting up new bars and restaurants are being given liberally in Greater Hyderabad limits. Consequently, the outlets are finding it tough to pay the license fee.
A similar situation prevails in municipal corporation and municipalities limits where many new bars and restaurants have come up in recent times.
A decision on the increase of licence fee will be taken after taking stock of the challenges faced by the outlets.
Incidentally, wine dealers have been demanding an increase in retailer’s margin.
At present, the dealers are getting a 27 per cent margin on ordinary category IMFL (Indian Made Foreign Liquor), 20 per cent on medium and premium categories of IMFL and 20 per cent on beer.
“All these issues will be discussed with excise officials in their scheduled meeting next month”, representatives of the Wine Dealers Association said here on Wednesday.
