Categories: Business

Corona cess: Liquor sales down by 60 percent in May-June due to high tax, revenue will come down


Liquor sales decline up to 60per cent in May-June in states with high Corona cess

new Delhi. Many states imposed a more than 50 percent corona cess on alcohol after the Corona virus lockdown was relaxed, with alcohol sales falling by an average of 59 percent in May and June. It has been claimed in a report.

The liquor industry association Indian Alcoholic Beverages Companies (CIABC) said in a report that states like Delhi, Andhra Pradesh, Odisha, Jammu Kashmir and Puducherry had imposed more than 50 percent corona cess on liquor. Liquor sales in these states were down 66 percent in May and 51 percent in June. According to the report, states like Arunachal Pradesh, Meghalaya, Rajasthan, West Bengal, Kerala and Jharkhand had levied 15 to 50 percent cess. Sales in these states registered an average decline of 34 percent.

States that had imposed a cess of up to 15 percent have seen a decline of only 16 percent. These states include Uttarakhand, Uttar Pradesh, Telangana, Karnataka, Chhattisgarh, Haryana, Tamil Nadu, Maharashtra, Assam, Chandigarh, Madhya Pradesh, Goa and Punjab. Nationally, sales have fallen by 25 percent and 15 percent, respectively, on an annual basis in May and June this year. CIABC Director General Vinod Giri said that the liquor industry contributes about Rs 2.5 lakh crore to the revenue of the state governments. However, in the current financial year, this revenue is going to fall by 25 to 30 percent.

He said that in some states there has been a big drop in liquor sales due to higher tax. Apart from this, the delay in opening bars and restaurants will also worsen this situation. Bars and restaurants contribute up to 10 percent of total liquor sales. Giri said the liquor industry has been affected more by the lockdown than other industries.

This post was published on August 3, 2020 9:38 am

Content Team

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