After Delhi, Liquor Prices In Karnataka To Get Costlier; Alcohol Bills Exceeding Rs 50,000 Go Viral

The state has lost almost Rs 3,000 crore worth excise duty in the last 40 days due to the lockdown and expecting to rake in 50 per cent of this from the 6 per cent increase in AED and growth in sales through the year.

People queue to buy alcohol outside a liquor store after the government eased a nationwide lockdown imposed as a preventive measure against the COVID-19 coronavirus, in Bangalore on May 4, 2020. (Photo by Manjunath Kiran / AFP)

Bengaluru, May 5: As some states have opened the liquor sale after the Centre has allowed sale in all zones with certain conditions excluding containment area, in standalone shops, the surge in the sale will make the liquor costlier in Karnataka. Karnataka has alone seen a record quantity of liquor sale valued at Rs 45 crore on the first day of reopening of sales, according to the state Excise Department, reported by IANS. "All liquor brands will cost more from next week when new stocks arrive for sales, as the 6 per cent increase in additional excise duty (AED) will be added to their maximum retail price," state excise minister H. Nagesh said. According to the directives liquor shops have reopened across the state, including red zones but not in hotspots, declared as coronavirus containment zones. This led to scores of people queuing up at shops to purchase liquor bottles including beer, whisky, brandy, or gin, which will now see a surge in prices. The state was to enforce 6 per cent hike in AED from April as proposed in the state budget for this fiscal (2020-21), but could not be enforced by the state Excise Department as old stocks remained unsold due to the lockdown. Since March 25 liquor shops remain shut along with pubs, bars, hotels, and restaurants across the state. However, the minister added because of the surge in demand after 40 dry days, the old stock is expected to finish by the weekend as there is no limit to buying any quantity of liquor from retail outlets or wholesale shops in all zones except in hotspots or containment areas. The state has lost almost Rs 3,000 crore worth excise duty in the last 40 days due to the lockdown and it is expecting to rake in 50 per cent of this from the 6 per cent increase in AED and growth in sales through the year. "As per the tentative figures we received from across the state, around 3.9 lakh litre of beer and 8.5 lakh litre of the Indian-made liquor (IML) were sold, netting Rs 45 crore when the liquor shops were shut by 7 pm, as per the new guidelines," told an excise official to IANS. Meanwhile, on the day in which the state made a record sale,  a Bengaluru vendor have come under scanner after two customer bills, each exceeding Rs 50,000 in value  went viral on social media. The state excise department has booked a Bengaluru vendor for violating licence rules.

An FIR was filed against Vanilla Spirit Zone, located in Tavarekere Main Road, where liquor worth Rs 52,841 was purchased by a customer, said Excise Deputy Commissioner (Bengaluru South) Giri J to Indianexpress.com. However, the retailer claimed that the purchase was made by eight people together but the same was billed together as the payment was made from a single ATM/debit card. The department is probing the incident and further action will be initiated accordingly. According to the licence rules, retail outlets can't sell more than 2.3 litre of Indian-made foreign liquor (IMFL) or 18.2 litres of beer to a customer per day.