As planned by the government, the excise revenue from liquor has gone up following the increase in Excise Duty and Additional Excise Duty in January this year, while the volume of sales has taken a hit this year.
As compared to last year, the excise revenue has gone up by Rs 42 crore for February-August period this year. The sales for the same period declined by 11 percent.
According to official statistics, the Excise Department netted a revenue of Rs 300.6 crore as compared to Rs 259 crore during the same period last year.
However, average monthly sales went down by 14 to 15 lakh cases, say industry sources.
The sales for July alone dipped to 1.86 lakh cases as compared to 2.20 lakh cases for the previos year. “We were expecting the sales to go up to an average of 2.50 to 2.70 lakh cases per month, but unfortunately it has declined,” said a liquor merchant.
The biggest dip has been felt in the cheap variety, where sales have gone down by 20 to 30 percent, say liquor traders.
The price difference between liquor in Puducherry and neighbouring states has narrowed down, which has effected the sales.
Moreover, with the increase in VAT, people from neighbouring towns of Tamil Nadu who used to purchase consumer goods in Puducherry have stopped coming. These visitors formed a sizeable chunk of liquor consumers. Not only have consumers from other states stopped coming but even the locals have shifted to medium segment due to the hike in prices.
The sealing of border by Tamil Nadu Excise Department has also stopped the flow of liquor across the border.
Even the premium segment which enjoys consumers from neighbouring states is now keeping away as the rates are almost at par with their states now. Sales in the medium segment, which is basically consumed by locals, have remained unaffected.
The volume of sales coming down would not auger well for the government in the long run. The liquor merchants too are waiting for neighbouring states to increase liquor prices which will bring back their consumers. It is already happening in Mahe, which adjoins Kerala, where sales have gone up after the Kerala government revised the duties.
In such a scenario, not only the traders but also the government will heave a sigh of relief as then it would be closer to the targeted excise revenue of `680 crore as per the Budget estimates of 2012-2013.
Comments
0 comment