VIJAYAWADA: The revenue from liquor to the State Commercial Taxes department fell by 73 per cent in the first six months of the fiscal, compared to the revenue in the corresponding period last fiscal.
As against Rs 5,735.48 crore revenue generated by the Commercial Taxes department in the first half of the 2019-20 fiscal, only Rs 1,529.94 crore was generated in the corresponding period of the current fiscal, 2020-21.
Officials claim that reducing the number of liquor outlets, increasing the prices of liquor and elimination of belt shops are the reasons for the fall in revenue. Stating that there was a sharp fall of 90 per cent in sale of beer and 60 per cent in sale of liquor, AP State Beverages Corporation Managing Director D Vasudeva Reddy explained that the dip in sale naturally had an adverse impact on the revenue generated through Value Added Tax (VAT) on liquor.
He said that as the government framed a new liquor policy towards imposing total prohibition in a phased manner, they were not concentrating on generation of revenue.When asked about the loss of revenue due to the flow of liquor from neighbouring States, he said the quantity was very less compared to the reduction in sale volume. Except in over 120 shops located in the border areas, the business in all the 2,800 odd wine shops is going normal.
An official of the commercial taxes department said that though the government enhanced the prices recently, the VAT was not increased. Instead, the government imposed Additional Retail Excise Tax (ARET). As the revenue generated through ARET goes to the excise department, the revenue collection by the commercial tax department witnessed the drastic fall, he explained.
Constancy agency to be appointed for Elite Shops
After getting nod from the government for establishing walk-in shops (Elite Shops), officials of the excise and prohibition department are mooting to appoint a consultancy for selection of buildings and finalisation of rents. The officials have decided to establish nearly 100 Elite shops across the state. Each shop will have a space not less than 1,000 square feet.