VIJAYAWADA: Though the recent drop in liquor prices resulted in a 20 per cent increase in the sales volume, there has been no increase in the revenue collection.
The State government slashed the prices from December 19, resulting in a 15-20 per cent fall in the cost of liquor and Rs 20 on each beer bottle after rationalisation of VAT, special margin rate and additional excise duty. As the cost of 180 ml liquor bottles came down by as much as Rs 60, tipplers are seen making beelines at wine shops.
Informing that around 60,000 cases of Indian-made foreign liquor (IMFL) were sold in a day before the fall in prices, AP State Beverages Corporation managing director D Vasudeva Reddy told TNIE that the daily sales now increased to over 70,000 cases of IMFL. “However, the daily revenue collection has been more or less the same.”
The official added the price cut aims at curbing the circulation of non-duty paid liquor (NDPL) and checking cross-border smuggling and illicit distillation, and the move was taken in light of the government’s efforts to reduce liquor consumption.
“After the price cut, there was a drop in cases of cross-border smuggling, which may have led to the increase in the sales volume of liquor in the State,” another official said.