HYDERABAD: The stage is set for the state government to enhance the liquor prices. It would be a matter of days before the state government notifies the revised rates on spirits and beers. Notably, the state government is planning to increase the prices in addition to increasing the Special Excise Cess (SEC), which was reduced last year.
The Prohibition and Excise Department has sent proposals to the government requesting permission to revise liquor prices to generate at least Rs 1,900 crore in the current financial year.
According to sources, a hike of Rs 20 on spirits and Rs 10 on beers are on the cards.
Chief Minister A Revanth Reddy recently held a high level review meeting with revenue-generating departments. During the meeting, the officials brought to the notice of the CM that the department is falling short of around Rs 2,500 crore, sources said.
They have also informed the chief minister that the state government had reduced the SEC on Indian Made Foreign Liquor (IMFL) and Foreign Liquor (FL) ranging from Rs 10 to Rs 120 per bottle, depending on the brand and quantity. Additionally, the government is also planning to increase beer price by `10.
While the previous government expected that the sale of liquor would increase with this move, it resulted in a deficit of revenues by `800 crore. “The government will get Rs 800 crore by reinforcing SEC and `800 crore by increasing the prices, and another Rs 500 crore on beer sales. With these measures, the government will get a revenue of Rs 1,900 crore,” sources added.