Sale of liquor relieves state's thirst for revenue

Sale of liquor relieves state's thirst for revenue

Dhaval KulkarniUpdated: Sunday, July 05, 2020, 11:16 PM IST
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Bhushan Koyande

It is an archaic system, and a relic of the prohibition era, when the sector was heavily regulated. But the cash-strapped state government has earned an unexpected windfall due to the sale of consumption permits for liquor.

Maharashtra has stringent excise laws, where consumption, possession or transport of liquor can be done only by permit holders. This permit is issued to drinkers for ‘preservation or maintenance’ of health. Any violation, like consumption of liquor without holding a permit, is an offence punishable with a fine or a jail term depending on its severity.

Though blanket implementation of the rule is difficult, this often leads to harassment of tipplers by the police and state excise personnel. Since Maharashtra is the only state that has such stringent rules, there have been demands for scrapping this age-old system.

However, the sale of these much-vilified permits has helped the state government during an economic downturn caused by the lockdown and resultant revenue crunch. The state Excise Department has allowed home delivery of liquor. Since counter sale in wine shops has been stopped in Mumbai and large parts of the metropolitan region, liquor is being delivered only to consumption permit holders.

State excise officials said this has led to a rise in the number of people applying online for these permits. While the annual average of such permits applied for was just around 40,000 earlier, the number has soared to around 1.50 lakh now.

KL Umap, commissioner, state excise, told the Free Press Journal that the department had earned around Rs 4 crore from the sale of these permits. “Home delivery has led to a rise in the demand for permits,” he added.

Liquor drinkers can also hold an annual permit for Rs 100 and lifetime permit for Rs 1,000, with daily permits being available for Rs 5. The age restriction for consuming Indian Made Foreign Liquor (IMFL) is 25 years while that for mild liquor like beer is 21 years.

Possession of the annual or lifetime permit allows the holder to stock 12 units of alcohol per month, with one unit covering 1,000 ML IMFL or country liquor, 1,500 ML wine and 2,600 ML of beer.

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