liquor cos face gloom post-bifurcation

liquor cos face gloom  post-bifurcation
Highlights

Liquor Cos Face Gloom Post-Bifurcation, Bifurcate the State,Liquor Manufacturing Units in the State. It is estimated that 45% of the liquor produced in 14 distilleries of Telangana is consumed in Seemandhra

  • Excise rules bar supplying liquor to other States
  • Manufacturers have to bear addl burden of taxes

It is estimated that 45% of the liquor produced in 14 distilleries of Telangana is consumed in Seemandhra

Private distilleries and breweries in Telangana are in a state of disarray over their business prospects following the Centre’s decision to bifurcate the State.

Of the 26 licensed liquor manufacturing units in the State, 14 are established in Hyderabad, Ranga Reddy and Medak districts, which contribute over 80 per cent of the total liquor consumption in the State.

Sources said that in the event of the division of the State, the companies would run into legal and excise problems. As per the excise rules, the manufacturing units are barred from supplying liquor to other States. They have to pay additional excise tax to the State government for selling liquor in other states. Also, the States which import liquor impose tax on the liquor sold.

It is estimated that over 45 per cent of the total liquor produced by the companies is being consumed in Seemandhra districts. According to sources, once the State gets divided, the companies would be forced to cut down the liquor production by half. Some of the units are also hired by foreign liquor brands like Carlsburg and Tuborg, which have the highest sales in Seemandhra. These brands took permission from State government by paying double excise duty in addition to sales taxes. Once the State is divided, the hired units would lose business.

In a recently held meeting where it discussed the consequences of the bifurcation of State on the liquor trade, the managements of the distilleries and breweries predicted gloom in liquor manufacturing business post-bifurcation.

Sources said that the managements also brought their business constraints to the notice of Chief Minister N Kiran Kumar Reddy during an informal meeting last week.

Finally, the managements have decided to submit a memorandum to the government urging it to resolve their grievances before the division of State.

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