Four-day liquor ban to result in a INR 300 cr loss for Karnataka

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The Bengaluru City District Liquor Traders Association (BCDLTA) has communicated through a letter to election officials, expressing concerns that the proposed 4-day liquor ban will result in significant losses for the industry and a decrease in excise duty revenue for the State government.
The organization further emphasized that the ban coincides with Valentine’s Day, a time when sales typically surge. This spike is largely driven by Bengaluru’s sizable young demographic, known for frequenting restaurants and pubs on this occasion, thereby boosting revenue by approximately 50 percent. Approximately 3,700 establishments in Bengaluru will be impacted by this measure.
The letter stated that four dry days will incur a loss of Rs 300 crores for the state in terms of excise duty and businesses will face a loss of Rs 500 crore. They requested the government and the election commission to re-examine the unfair closure of bars and liquor shops. “There are only 16,000 voters and they are all educated and intelligent people. The authorities must take appropriate decisions and cooperate for the survival of the Food and Beverage (F&B) industry,” the letter stated.
PC Rao, President, Bruhat Bengaluru Hoteliers Association, said that the ban is unscientific and was unexpected. Many restaurants have curated and planned events for their patronage which will affect businesses. “The turnover for just four days is expected to be Rs 450 crores, out of which the excise department has Rs 250 crores, not just the hoteliers but even the government will incur heavy losses. According to data, the government collects Rs 60 crore in excise collection per day,” Rao said reiterating the dissatisfaction of the industry.

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