Assembly dissolution hits liquor sale

THE SUDDEN dissolution of the Assembly affected the expectations of the excise department on increase of liquor sales.

Due to new rules imposed by the state government and strict vigilance by the Election Commission and also because of the new excise year starting ahead of Assembly elections, dealers have not been able to stock up on liquor. This may affect how much they can purchase during the forthcoming festival season and the subsequent elections.

The sudden dissolution of the Assembly on September 6 — the excise year ends in September — affected the expectations of the excise department on increase of liquor sales. According to rules, dealers can draw up liquor seven times the licence fee. For excess purchases, they will have to pay 13.5 per cent tax. For example, a dealer with a `1 crore licence fee can purchase liquor up to `7 crore from the TS Beverages Corporation without having to pay 13.5 per cent tax. The excise year ended on September 30, a Sunday. October 2 again was a government holiday to mark Gandhi Jayanti. By the end of the excise year, the dealers had drawn 98 per cent of liquor against their licence fee, and did not purchase extra to avoid paying the 13.5 per cent tax.

Now, the government is expecting the election schedule to be announced around the middle of this month. Once the schedule is announced, the Election Commission enters the picture and dealers will not be able to draw additional quantity of liquor.

Once the poll schedule is announced, the Election Commission imposes restrictions on sales of liquor by the Beverages Corporation. It will decide the quota to be released to dealers based on the withdrawals of the previous month or in the same month of the previous year.

Dealers, however, are focused on the Dasara festival when the consumption of liquor peaks, rather than the elections. Mr M. Kameswara Rao, general secretary of the Association of Liquor and Beer Suppliers, said liquor sales increased by 20 per cent during Dasara, and dealers purchased adequate stocks from the corporation.