Wine dealers’ association demands hike in trade margin, warns of boycott in Andhra Pradesh

The State government will incur a daily revenue loss of Rs 50 crore if all the 4,380 liquor shops and 800 bars & restaurants across the 13 districts stop taking stocks.

VIJAYAWADA: Demanding the State government to increase trade margin to 18 per cent from the existing 9 per cent, the AP State Wine Dealers Association (APSWDA) has warned that its members will not purchase stocks from depots from April 25 if the government fails to take a favourable decision on the matter.

"We won't purchase stocks from depots from April 25 if the government fails to accept our demand to increase profit margin. We have no other option," association president Rayala Subba Rao said.

The State government will incur a daily revenue loss of Rs 50 crore if all the 4,380 liquor shops and 800 bars & restaurants across the 13 districts stop taking stocks.

In a State-level meeting of wine shop owners from all the 13 districts on Saturday, the association members discussed the issue.

"More than 95 per cent of dealers in the State are running their businesses in losses. We gave a representation to Chief Minister Chandrababu Naidu, requesting him to enhance the trade margin from the existing 9 per cent to 18," said Rayala Subba Rao.

Subba Rao also said they have conducted talks with Excise & Prohibition Minister and officials, but in vain.

"Citing the decrease of license fees, Excise department has revised the trade margin to 10 from 21 per cent, of which 1 per cent will be paid to the Income Tax department," he told reporters here.

Association general secretary Grandhi Ganesh explained the hardships being faced by traders. "If a trader (in cities) purchases stock worth Rs 30 lakh, he will get a profit Rs 5.5 lakh of which he has to pay, rents, salaries and other maintenance charges. How can traders continue their business," he asked.

Detailed letters were submitted to the Minister of Excise and Prohibition KS Jawahar and special chief secretary to government D Sambasiva Rao, but in vain, he said. "It is illegal to revise the trade margin after paying license fees to the government," he said.

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If a trader (in cities) purchases stock worth `30 lakh, he will get a profit `5.5 lakh of which he has to pay, rents, salaries and other maintenance charges. How can traders continue their business. It is illegal to revise the trade margin after paying license fees to the government -- Grandhi Ganesh, AP State Wine Dealers Association general secretary

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