BENGALURU: Happy hours are over. After hiking liquor prices three times in the last two years, the State Government has now proposed to hike annual licence renewal fees of distilleries, breweries, liquor shops, bars and restaurants and clubs serving liquor by 100 percent.
The government which is currently collecting Rs 700 crore through fees annually will collect Rs 1,400 crore from about 12,000 different types of licences. The licence fees were last revised during 2016-17.
The new proposals are likely to come into effect from July 1.
Annual licence renewal fee of breweries has been hiked to Rs 54 lakh from the existing 27 lakh and that of the distilleries will jump to Rs 90 lakh from Rs 45 lakh. Similarly, the annual licence renewal fee of bottling units of distilleries and breweries has been increased from Rs 1 lakh to Rs 2 lakh.
The annual lease amount of retail vending of bulk beers has also been hiked to Rs 3 lakh and that of clubs, bar and restaurants, bars with lodging serving liquor to Rs 2 lakh.
Even the fees for transfer of licences for selling Indian liquor or foreign liquor, or both, has been hiked substantially from the existing fees to twice or thrice. The military canteens and wineries as usual did not get affected as nominal fees continued to apply. The license fee for wine tavern is Rs 2,000 per annum and boutiques Rs 5,000.
‘Will file our objections to government’
To oppose the decision to revise licence renewal fees, the members of the Karnataka Wine Merchants Association held a preliminary meeting on Friday. “We had a preliminary discussion today. We will take a final stand by Monday after another round of discussion,” Association President Govindraj Hegde told TNIE.
Another member of the Association said the government’s proposal will have a negative impact on the liquor business which has already become highly competitive reducing the profit margins of the wine shop owners almost to the nil. “I feel at least 10% to 15% of licensees will not renew their licences,” he said.
“The government must understand that the licence is only a means to run a business and it should not be seen as a source of income. The 100% increase will definitely burden the distillers and brewers,” said Shivalingaiah, General Secretary, Association of Distilleries and Brewers. The association has called a meeting of its members on Saturday to discuss the issue. “We will definitely file our objections to the Government,” he added.