By Sampat G. Samritan

Copyright deccanchronicle

Vijayawada: Liquor traders are awaiting a relaxation in the 15 per cent additional retail excise tax (ARET) as also some incentives, so that they could participate in auctions for allotment of a few hundred bars across the state.Some 300 bars remain unallotted out of a total 840 bars in the regular stream, though two notifications had been issued for their auction. Chief minister Chandrababu Naidu is learnt to have asked the excise department to look into the issue and see that the liquor traders “do not suffer a loss” in their business. Naidu did this when he was informed that the liquor business might turn unremunerative under the new bar policy-2025-28, due to a series of conditions and levy of high ARET resulting in cost escalation for bars, compared with liquor retail shops. The excise department issued the first notification for allotment of 840 bars on August 18 and held a draw of lots to allot bars to successful bidders. It gave an extension of the last date for submission of applications, but there still was a cold response from the traders. The department issued a second notification on Sept 2 and repeated the process yet again. However, 300 bars still remain unallotted. As for retail shops, 3,400 of them have been allotted. This fetched the exchequer Rs 18,000 crore. Traders say that imposing a 15 per cent ARET, levy of a non-refundable fee of Rs 5 lakh for each application, mandatory submission of four applications for each bar to allot it through draw of lot, allowing permit rooms adjacent to retail liquor shops with revised timings of 10am to 10pm and allowing sale of cheap liquor through retail shops were a dampener. Huge money is involved in the setting up a bar in compliance with norms vis-à-vis their location etc. This is discouraging liquor traders from filing applications for allotment of bars. Hoteliers and restaurants in liquor business, who set up bars for some time, and those who are in liquor business for a long time, as also those having bars in their own premises are still showing an interest to continue their liquor business. But, only a few newcomers have ventured into the business under the new bar policy. As some 300 bars could not be auctioned yet, the excise department is faced with a huge burden. A liquor trader said, “We are hopeful of some relaxation on ARET or any incentive from the excise authorities so that we can confidently file applications for allotment of these bars.”