'Goa’s reputation as tourism destination with cheap booze will suffer due to excise duty hike'

Goa’s reputation as a merry tourism destination with affordable alcohol will suffer in the future if the BJP-led coalition government does not roll back a steep hike in excise duty on alcohol, bars and restaurant owners in the tourism savvy state have said.

After submitting a memorandum of demands to Chief Minister Pramod Sawant, president of All Goa Bar and Restaurant Owners Association Michael Carrasco also claimed that plugging revenue leakages would earn the state government more revenue than a 30% hike in excise duty, as proposed in the state budget last month.

“Tightening the laws and loopholes in the liqour trade is a must to increase the revenue of the government, as well as the sale of restaurants. Illegal sale of liqour by hawkers, fast-food operators, local houses and roadside kiosks, have to be stopped with immediate effect,” the Association has said in its representation to the chief minister.

“With all these hikes, the revenue of the government will decrease due to decrease in sales. The common man and the tourist will feel the pinch and will avoid going to restaurants, due to high prices. Our state is also known all over India and the world, for affordable food and liquor. With these hikes, there will be no difference in the prices of liquor all over India. For example (booze in) Delhi would be cheaper than Goa,” Carrasco has said in the memorandum.

One of the most popular tourist destinations in the country, Goa is well known for its liberal liquor regime, where alcohol is taxed less, as compared to other states, especially its neighbours Karnataka and Goa.

There are over 11,000 licenced liquor vendors in the state, including bar and restaurant licence holders, which would be impacted by the proposed 30% hike.

Licenced liquor vendors have already made a representation to the government to slash the proposed excise duty hike.

Sawant has maintained that the hike in excise duty on alcohol was on the same lines as the hikes in other duties levied on government services.