PUDUCHERRY: Even as liquor shops reopen in Tamil Nadu, Puducherry remains in a dilemma over whether it should follow suit. Puducherry Chief Minister V Narayanasamy on Thursday said the government will take an appropriate decision very soon on when to reopen liquor shops after holding discussions with all stakeholders including liquor shop owners.
Though Puducherry is a traditional liquor consuming region, the government needs to consider both protecting the lives of the people from COVID-19 and at the same time generating revenue from excise, he said.
Several states have reopened liquor shops to generate revenue. Already it was decided in the cabinet to take a decision on reopening liquor shops based on decisions taken in the adjoining state of Tamil Nadu. But nevertheless every aspect would be discussed in a cabinet meeting before a decision is taken, he said.
The continuous spike in COVID-19 cases in the adjoining districts of Cuddalore and Villupuram, which are in red zones, remains a concern as reopening liquor shops will attract tipplers from these districts and could lead to the spread of COVID-19 in Puducherry. It would be a challenge for the police and excise department to prevent people from crossing the border through the interior village roads.
R Siva, legislature party leader of the DMK, an ally of the ruling Congress, urged the Chief Minister not to permit the reopening of liquor shops till the situation improved in the red zones of Villupuram and Cuddalore districts.
Liquor shop owners whose licences have been suspended by the Excise Department on charges of unauthorized sale during the lockdown are not favour of reopening liquor shops by others till their issues are resolved, but the majority of liquor shop owners are in favour of reopening.
On the other hand, even if Puducherry does not reopen liquor shops, the COVID-19 threat looms large as people from here could slip into Tamil Nadu and return after consuming or purchasing liquor. Health Minister Malladi Krishna Rao has already cautioned the Chief Minister in this regard and advised him to reopen liquor shops. Such a situation could also lead to illegal sale of liquor in Puducherry by people getting cases of liquor from Tamil Nadu.
Another factor is that even if shops reopen, the government will not earn any revenue from the existing stock in wholesale and retail shops, as it collects tax in advance in the form of Excise Duty (ED) and Additional Excise Duty (AED) replacing sales tax when liquor is procured by traders. Only when the traders get new stocks from distilleries and breweries will they have to pay ED and AED. The only way for the government to earn revenue from the existing stock would be through a COVID cess as done by other states.