Goa liquor industry wary of hike in duty, says sales will take a hit

PANAJI: The Goa government’s decision to hike liquor duties across the board will be counterproductive and risk impairing the tourism and liquor industries in the state, known to have the country’s most inexpensive alcoholic beverages, representatives of the industry said.

The International Spirits and Wines Association of India as well as the Goa Liquor Traders Association have expressed concern that the higher prices, which take effect on April 1, will lead to a decrease in sales.

In his maiden budget speech delivered earlier this month, Goa chief minister Pramod Sawant announced a hike in excise duty and fees ranging from 20% to 50% on sale of all categories of liquor.

The move, he said, was aimed at augmenting state revenues which have taken a hit following the implementation of the Goods and Services Tax. The state earns around ~400 crore from excise revenue and after the hikes hopes to earn an additional ~100 crore.

“We are disappointed with the price hikes and more so because we could have worked with the government to achieve its revenue targets without increasing the excise duties,” said Amrit Kiran Singh, executive chairman of the International Spirits & Wines Association of India.

“Through encouraging ‘premiumisation’ and expansion of excise duty slabs we can ensure that consumers drink less, but drink better; we can ensure that revenue targets are met, the state’s image as a tourist destination is protected and we promote responsible drinking,” he said.

The Goa Liquor Traders’ Association too said the hikes will kill the industry. “Hikes like these will totally kill the liquor industry, which is one of the few industries in the state that is controlled by locals,” said Dattaprasad Naik, president of the Goa Liquor Traders Association.

“This ~100 crore revenue they are hoping to get is subject to sales. If sales continue at current levels will they get such revenue, which is not going to happen...”

He said that if the proposed hikes take effect, the price of Indian Made Foreign Liquor (IMFL) in Goa will be higher than much of North India and higher than the prices in 71% of the country.