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Updated: June 25, 2013 01:35 IST

Liquor shops to double up as ‘bars’

Special Correspondent
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The State government in its new excise policy announced on Monday, has allowed annexes to the outlets for consumers to sit and drink

Liquor shops in municipalities and municipal corporations will double up as ‘bars’ from July 1 as the State government in its new excise policy announced on Monday, has allowed annexes to the outlets for consumers to sit and drink.

Earlier, the permit rooms attached to liquor shops were allowed only in villages with a population above 5,000. The facility will continue for such villages but will not be available to habitations with lesser population.

Other significant features of the new policy include provision of retailer margin from out of rounding off of maximum retail price on liquor bottles to the nearest Rs. five.

The rounded off figure was earlier claimed by the government. Depending on the brands, a certain margin will be given to the retailer now, excise officials said.

A privilege fee at eight per cent plus applicable VAT on the turnover of shops in excess of seven times the annual licence fee will be charged during the year.

The rule was earlier applicable on turnover in excess of six times the fee.

There is, however, no change in the annual licence fee per shop for different population slabs.

It remains Rs. 32.5 lakh for population up to 10,000, Rs. 34 lakh above 10,000 and up to 50,000, Rs. 42 lakh above 50,000 and up to 3 lakh, Rs. 46 lakh above 3 lakh and up to 5 lakh, Rs. 64 lakh above 5 lakh and up to 20 lakh and Rs. 104 lakh above 20 lakh.

The excise commissioner was permitted to relocate the unsold shops from any locality but he could not relocate them from higher licence fee slab to lower slab. They could be relocated in same slab or from lower to higher slab.

About 80 shops were proposed to be relocated although there were 617 unsold shops out of 6,596 shops in the State.

The policy envisaged that the method of selection for grant of shop licences of unsold shops would be by draw of lots like last year but the period of licence would be only one year. There will be no right of subsequent renewal beyond 2013-14.

The AP Beverages Corporation will continue to vend liquor in the retail market until the unsold shops are disposed of.

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