One of the major highlights of the Budget-2008 is the excise policy, which has been liberalised to make the liquor reach the tipplers of the State. Government is also offering a steep concession in licence fee for establishing winery and taverns.

The government had anticipated an excise revenue of Rs 3,300 crore in 2007-08, which was around Rs 1,200 crore less than the revenue generation in 2006-07. However, by March 31, the excise revenue stood at Rs 4,668 crore. With the increased revenue more than the expectation, this year the government’s projected collection through State Excise is Rs 5,626.08 crore.

This year the government proposes to open new IMFL outlets in the state. The Chief Minister told the House that after the abolition of arrack, many consumers in the rural areas are covering long distance to obtain IMFL. Considering this, the government proposes permit 1000 additional liquor shops and 500 more bars and restaurants during the current year. However, these grant of licences will be strictly within the population norms prescribed under the Excise Rules.

The government also proposed the permit transfer of liquor shop licences from urban areas to rural areas and from one place in rural areas to another place within a district to facilitate opening of shops in ‘unserved areas’. The government also made strict rules that the IMFL be sold according to the MRP, ‘prescribed by the Excise Commissioner’. The government will bring an amendment in the Excise Act so as to give more teeth to the Excise Department to cancel the licences in proven cases of violation of the MRP.

Wine policy

Along with it the government has introduced new wine policy in which the licence fee for establishing a winery has been reduced from Rs 50,000 to Rs 5,000 and the fee for a tavern license is fixed at a nominal Rs 1,000. Government believed that the liberalised taxation on wines and the promotional efforts of the State Wine Board, the wine industry will take ‘firm roots’ benefiting thousands of grape farmers in the state.

BANGALORE FULL!

If the excise policy has anything to go by, Bangalore requires no more new IMFL licenses for retail outlets, bars and restaurants.

The excise policy says that there should be one liquor shop, bar or restaurant for a population of 7,500 in cities, whereas one such outlet can be opened in rural areas for a population of 15,000.

Bangalore presently has around 2,150 retail outlets, bar and restaurants. As per City’s existing population, there should be not more than 1,000 liquor shops. However, the existing liquor shops are double to the required liquor shops.

“We don’t think the government would give liquor licenses for new shops, bar or restaurants in the City. The policy is mainly to open new outlets in rural areas,” said a senior officer with the Excise Department.

WHAT THEY SAY?

The Excise Policy shows government’s intention and direction. Let the government call it a pro-farmer or a populist budget, the opening of taverns and wineries and 1,500 liquor shops is going to hit the poor people hard in general and the poor woman in particular, because she is going to bear the brunt of alcoholism. The government has taken a slew of good measures but it does not mean that it is entitled to take bad measures also.”

- Shakun of Vimochana,
women’s organisation

“While banning arrack, the government’s intention was never to discourage alcoholism but only to generate more revenue through the IMFL. Arrack gives room for siphoning off the revenue while such practices are usually not possible with IMFL.”

- Vimala of Janavadi
Mahila Sangathana