Liquor shops tense on high VAT
The increase in liquor prices due to 12.5 per cent VAT hike and reduction in liquor outlets on account of the state government’s new excise policy, that came into force from Sunday, have led to tension at several outlets in the city.
The first day of the new excise year saw old complaints like MRP violations as shopkeepers sold liquor much over the stipulated price citing VAT hike.
Heated arguments were witnessed at various outlets, when customers refused to pay the increased rate arguing that the shopkeepers were selling old stock, that was pro- cured before VAT hike, for new rates. It also led to attacks between customers and shopkeepers at some locations. Some customers at a liquor outlet in Film Nagar, Jubilee Hills, sustained head injuries following clash with the shopkeeper.
With the government allowing retail outlets to increase prices by 8 to 10 per cent following VAT hike, retailers increased prices up to `60 per full bottle for normal brands and up to `100 for premium brands. The retailers increased the price for quarter-bottles by `10, leading to resentment among boozers.
The sharp decrease in retail outlets in the city fol- lowing the new excise policy, has further added to the woes of boozers and retail outlets.
While there were 212 retail outlets earlier, they came down to 157 now, as there were no takers for 65 shops.
With this, the existing outlets at various location struggle to meet the demand and serpentine queues were witnessed in front of several outlets in the evening, with Sunday being a holiday.
“In Marredpally, earlier there were four outlets. Now there is only a single outlet as earlier three retailers did not opt for licences following the new excise policy. With this, there is huge rush at the only outlet in this area. Same is the case with several other localities,” said Mr D. Venkateshwar Rao, general secretary, AP State Wine Dealers’ Association.
However, the association refuted the complaints that they were selling old stock for new prices. “The excise department has stopped supplies since one week. The old stock is exhausted. The rate revision is only in the case of new stock. It’s common to face resistance from customers when rates are hiked,” he added.