Daijiworld Media Network-Bengaluru (RJP)
Bengaluru, Jan 22: The government, with the present tax collection projection of Rs 15,200 crore in the current financial year on excise products and luxury tax, wants to increase it by at least Rs 5,000 crore, it has been reliably learned. The best weapon it can use to achieve this is by allowing more liquor shops to come up in the state. As per sources, the government has already decided to grant licences to around 1,500 liquor shops from the next financial year.
The projected income of Rs 20,000 crore for the next financial year will come from liquor shops, bars and restaurants and luxury taxes levied on clubs and star hotels. In the current financial year, the government has managed to collect Rs 11,115 core till December 31. The sources also said the government wants to increase the tax collection without taxing the ‘common man’ more.
The excise department has already submitted the proposal to the government on the new liquor licences. 25 % of licences will be reserved for people from Schedule Caste and Schedule Tribe categories. The government will ‘claim’ that the increase in number of liquor shops will bring in additional income to the unemployed youth, said the sources.
The proposal of issuing new licences will be announced during the budget. The present 20 % tax on 17 liquor slabs will also be increased. The current 5.5 % Vat on bar and restaurants, clubs, hotels, lodges will continue.
The government which has not issued licences for the past 15 years to private parties had allowed only government owned Mysore Sales International Limited (MSIL) to open 362 liquor shops. Most of these shops were opened on highways ‘inconveniencing’ the drinkers from towns and villages. The government feels now that those shops are not enough to ‘quench’ the thirst of liquor lovers.
Presently there are 9,600 liquor licence holders in the state which include 3,950 wine shops. Others are bar and restaurants, clubs, hotels and lodges.
Meanwhile the bar and restaurants owners have demanded that 5.5 % Vat on sales of liquor should be abolished.