The Hindu : Andhra Pradesh / Hyderabad News : Liquor traders cry foul

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Monday, Nov 16, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Liquor traders cry foul

Special Correspondent

HYDERABAD: Liquor traders in the State are getting ready to lock horns with the government after they were ordered to pay extra duty on liquor stocks they had already purchased from the Andhra Pradesh Beverages Corporation Limited (APBCL).

Traders in the capital are the most affected as they had nearly bought liquor worth not less than Rs. 20 crore on Friday last in anticipation of a boost in sales in view of the GHMC elections. It is estimated that the total sales crossed Rs. 100 crore all over the State on Friday!

Jump in sales

There was a reason for the unprecedented jump in sale of liquor in depots of the beverages corporation. The government had recently enhanced liquor rates, excise duty and the trade margin charged by the corporation.

However, when the licensees bought stocks on Friday, the corporation had collected enhanced trade margin only as the increased excise duty and rates were not applicable to the stocks already held by it.

The apparent reason for this was that VAT and other taxes would have already been paid for the stocks available with the corporation and hence only enhanced trade margin was collected. Liquor traders bought stocks at unprecedented levels anticipating rates to be hiked shortly, more so here.

It was only after noticing the sudden jump in sales that the government had issued another order asking the corporation to collect enhanced rates.

However, since traders had already completed the transactions and lifted the stocks, officials have been ordered to collect the differential amount when traders come to buy fresh stocks.

‘Unjustified’

Traders are crying foul arguing that they had already sold the stocks and there was no way they could go back to the customer to collect the differential amount. “It’s totally unjustified.

They have collected the enhanced trade margin and released stocks.

How can they collect enhanced rates on the stocks already sold by them?” questions D. Venkateshwar Rao, general secretary, A.P. Wine Dealers Association.

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