In a rare phenomenon, the Rajasthan government is using ways to push alcohol sales in the state to replenish its coffers drained out by imprudent financial planning. According to media reports, the Rajasthan government has already raised retail liquor prices, licence fees and VAT this year, all to shore up revenues. The state government is urging restaurants, hotels and beer lounges to increase sales.
Data reveals nearly 300 bars in hotels have been asked to pay a penalty for not selling 10% more liquor, as compared to last year.
Commenting on the action, secretary of Hotel Bar Owners Welfare Association Dilip Tiwari said, "The authorities concerned want us to increase sales by 10%. Many hotels face competition due to the increase in the number of bars and lounges and failed to register a 10% growth in sales. Now these hotels have been issued notices to pay penalty for not selling more alcohol than last year."
It is challenging to increase the sale of liquor as the government is also bringing a hike in the liquor price, he said.
Earlier, only retail shops were covered under the policy of increasing liquor offtake from the government by 10% every year. But without consulting bar owners, the excise department has also now brought bars under the policy.
Tiwari said it was possible for retail shops to increase sales by 10% because their number remains constant. The government does not increase the number of retail shop licences when it invites applications. But the case is not the same for hotels.
The licence fee for the current year has been increased for bars from Rs 7 lakh to 8 lakh, he said, adding this comes after VAT was raised from 20% to 24%.
“The rising cost of liquor is also slowing down sales,” he said.
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