A proposal to this effect has been mooted by the excise department to help meet its increased revenue target
A proposal to this effect has been mooted by the excise department to help meet its increased revenue target
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IN a bid to meet its increased revenue target, the Maharashtra State Excise Department is considering taking over the wholesaling of liquor in the state.
If the plan takes off, all liquor wholesalers will be out of business as the department will hold the sole rights of selling alcohol to retailers.
Some wholesalers feel the move could result in a further rise in prices for tipplers
Towards this end, a team of excise officials was sent to Karnataka and Andhra Pradesh, where a similar system has been in place for years.
A senior excise official said the proposal was mooted after the state excise department was given a revenue target which is 42 per cent higher than its target for the 2009-10 fiscal.
"The targets of other departments, such as sales tax, were hiked by only 9 to 10 per cent, but there was a 42 per cent increase in the target for us.
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That was when this proposal was made and a team was sent to AP and Karnataka to study how the system works there," he said.
PT Gaud, joint secretary (excise) confirmed that such a move was in the works. "We have not yet decided. We are going slow on it as of now, and a decision will take time," he said.
'Death knell'
Liquor wholesalers are, understandably, apprehensive of the effect the move will have on them. A member of the Maharashtra Wine Producers Association said, "They are killing the golden goose.
The high taxes imposed on us in the budget have already crippled the industry and this plan will sound the death knell for us if it takes off."
Manish Paul, a liquor wholesaler said, "The move could result in a further rise in prices for the end consumers as retailers may sell at a price higher than the MRP if they are not making a high enough profit."
Money spinner
The states in which such a system exists currently:
>>u00a0 Karnataka,
>> Rajasthan
>> Andhra Pradesh
>> Madhya Pradesh
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