PUDUCHERRY: Confusion prevails in Puducherry on the reopening of liquor shops in the Union Territory, as the excise department is yet to issue a notification in this regard, despite Chief Minister V Narayanasamy announcing that liquor shops would reopen on Wednesday after levy of corona tax.
“The file is being closely scrutinized after receiving it now”, Lt Governor Kiran Bedi told Express at around 9 pm. Under the circumstances, whether it will be cleared late on Tuesday for the issue of notification is not known, even as Liquor traders wait in the Office of Deputy Commissioner (Excise).
The Cabinet decision for reopening the liquor shops by levying a corona tax on India Made Foreign Liquor (IMFL) products has been sent to Lt Governor for approval this afternoon, Chief Minister V Narayanasamy said.
Accordingly, it has been proposed to levy 25 per cent corona tax on MRP on IMFL products in Puducherry and Karaikal region bordering Tamil Nadu, 30 per cent corona tax in Mahe region bordering Kerala and 35 per cent corona tax in Yanam region bordering Andhra Pradesh keeping the rates of tax a little higher than the adjoining states of the regions, Narayanasamy told Express.
Initially, the Cabinet proposed to levy 50 per cent corona tax, to earn more revenue, since excise is the major source of revenue for the UT after commercial tax. However, based on feedback from liquor traders, the Cabinet had decided to reduce the corona tax , as high taxes will bring down the volume of sales and the revenue. By keeping the rates of liquor a little higher will not attract people from red zones of neighboring states from coming to Puducherry for liquor.
The excise department had netted around Rs 868 crores revenue in 2019-2020 with an average of the monthly collection of around Rs 60 crores. Now with the excise department suspending 100 the liquor license and cancelling the liquor license of another 14, and CBI inquiring into the illegal sale of liquor during the lockdown period, only the remaining of the 455 shops can do business to earn revenue for the government.